US gasoline demand ties record: EIA

US gasoline demand rose to match a record high last week, helping to draw down national inventories of the fuel despite rising domestic production, according to the Energy Information Administration.

Weekly implied gasoline demand rose by 2pc from the previous week to 9.8mn b/d, matching a record set in August 2007, according to the EIA. Ultra-low sulfur diesel demand also rose, higher by 6.7pc to 3.8mn b/d.

Gasoline inventories fell by 2.6mn bl to 237mn bl, the strongest drop for the week in at least the past ten years and a draw during a week that over the past decade averaged a 700,000 bl build, according to EIA data. A massive 2.1mn bl draw on midcontinent inventories, followed by a 1.6mn bl draw on the west coast and 191,000 bl decline in the Gulf coast, more than offset a 1.3mn bl build in Atlantic coast gasoline storage.

Refinery and pipeline outages roiled the midcontinent last week and sent Chicago-area gasoline prices to a nearly 16.6¢/USG premium to the Nymex gasoline benchmark on 8 June. Prices have since retreated to a 4.2¢/USG premium at yesterday's settlement.

Ultra-low sulfur diesel inventories were flat to the previous week. A 319,000 bl draw on the west coast, to 11.7mn bl, neatly balanced a 320,000 bl build in the US Gulf coast, to 41.5mn bl. All other regions were effectively unchanged.

Crude throughputs at US refineries held steady at 16.3mn b/d, with rising Atlantic coast and Rocky mountain rates offsetting falling west coast processing. Midcontinent rates were unchanged at 3.7mn b/d. Gasoline production adjusted for ethanol increased above 10mn b/d for the first time since 13 May, according to the EIA, with production rising in every US region.

ULSD production increased by 2.5pc from the previous week to 4.7mn b/d, its highest volume since 1 January.