Gasoline inventory in the U.S. reached 207.7 million barrels last week, indicating an increase of 800,000 barrels compared to the previous week. Despite this increase, inventories are 5 percent lower than the five-year average for this time of year. This situation has raised concerns about fuel supply in the future.
Refinery Performance and Gasoline Production
Refineries processed an average of 17.3 million barrels of crude oil per day last week, operating at 96.8 percent of their capacity. Gasoline production also reached 9.6 million barrels per day. Over the past four weeks, gasoline demand averaged 8.8 million barrels per day, which is 1 percent lower than last year.
Read more: Japanese refiners' efforts to purchase Middle Eastern oil
Price Increases and Influencing Factors
On Thursday, the price of gasoline reached $4.44 per gallon, which is 16 cents higher than last week and over $1.20 compared to last year. Meanwhile, diesel prices hit a new record of $6.40 per gallon. Diesel inventories have also significantly contributed to concerns, as these inventories are 13 percent lower than their five-year average.
Several factors have exacerbated this situation, including reduced refinery capacity in Russia due to drone attacks in Ukraine and restrictions on diesel exports. Additionally, exports of petroleum products from the Middle East have faced challenges due to existing tensions in the region. This situation has particularly led to real shortages in the market.
In the Great Lakes region, refinery issues have caused diesel prices to rise to $6.65 in Michigan, $6.53 in Ohio, $6.49 in Indiana, and $6.46 in Illinois. Experts believe that prices in some states will soon approach $7. This issue is not only a local problem but has become a global issue regarding diesel supply.
Despite the concerns, data from the Energy Information Administration (EIA) shows that gasoline inventories increased last week and production has also risen. Crude oil inventories are 1 percent above their five-year average. However, high gasoline and diesel prices are particularly concerning for consumers.
The price of $4.44 per gallon for gasoline can create a heavy financial burden for many households. In this situation, the excitement caused by prices can lead to real shortages, as people rush to fill their tanks.
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