Demand data for gasoline offered timely confirmation of U.S. consumer strength. Even though pump prices have been on the rise, gasoline demand has risen for three straight weeks, to an average of 9.2 million barrels per day. Demand for distillates is also on the rise in an indication of both industrial demand and also heating demand.
On the supply side, refineries are increasing production especially of gasoline heading into the year-end driving rush. Gasoline stocks, despite the rise in demand, rose 2.4 million barrels to 217.2 million. Distillate stocks fell a slight 600,000 to 160.7 million.
Oil stocks declined for the third straight week, down 5.3 million barrels to 340.7 million. Oil imports were up in the week, underscoring the drawing effect from refineries. Oil, over $90 U.S. today, is showing little initial reaction to the report.
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