US gasoline inventories 

The EIA (U.S. Energy Information Administration) reported that US gasoline inventories rose by 3.3 MMbbls (million barrels) to 240.1 MMbbls between May 26, 2017, and June 2, 2017. Gasoline inventories rose 1.4% for the week ending June 2, 2017—compared to the previous week. A better-than-expected rise in gasoline inventories pressured gasoline and crude oil futures on June 7, 2017. Gasoline and crude oil (USL) (FXN) (PXI) futures fell 4.1% and 5.1%, respectively, on June 7, 2017.

US Gasoline Inventories: More Concerns for Crude Oil Prices

Lower gasoline prices have a negative impact on oil refiners like Western Refining (WNR), Marathon Petroleum (MPC), and Tesoro (TSO). Likewise, lower crude oil prices have a negative impact on oil and gas producers like Stone Energy (SGY) and Triangle Petroleum (TPLM).

Gasoline production, imports, and demand 

The EIA estimates that US gasoline production fell 496,000 bpd (barrels per day) to 9,934,000 bpd between May 26, 2017, and June 2, 2017. Production also fell by 188,000 bpd during the same period in 2016.

US gasoline imports rose by 84,000 bpd to 703,000 bpd between May 26, 2017, and June 2, 2017. Gasoline demand fell by 505,000 bpd to 9,317,000 bpd during the same period. However, gasoline demand is expected to hit a record this summer. To learn more, read US Gasoline Consumption Rose in May.

Impact of gasoline inventories  

US gasoline inventories are 7.2% below their all-time high. The expectation of a fall in gasoline inventories due to a rise in gasoline demand could support gasoline prices. High gasoline prices could push crude oil prices higher.

In the next part of this series, we’ll take a look at US distillate inventories.

Latest articles

WeWork is gearing up for an IPO. On Wednesday, the company made its IPO filing with the SEC public and expects to garner $3.5 billion from its IPO.

After FCC Chairman Ajit Pai recommended the approval of the T-Mobile–Sprint merger, Representative David Cicilline urged the FCC to allow public comment.

Cresco Labs (CRLBF) is set to report its Q2 earnings on August 21 after the market closes. The company's stock fell 5.3% yesterday.

Cannabis stocks mostly traded in positive territory today. Supreme Cannabis (FIRE) and Aurora Cannabis (ACB) rose about 9.5% and 5.5%, respectively.

NVIDIA (NVDA) stock soared 6% in today’s trading session as its Q2 earnings for fiscal 2020 beat estimates. However, its guidance missed estimates.

Nio Inc. (NIO) has disrupted the automotive space since 2014 but only made waves in the market since its IPO. Investors have suffered numerous setbacks.