- Retail regular gasoline prices rose by 0.4c in the last four weeks to $3.541/Gal. About 51% of the change was due to the price of crude oil, while the remainder was the refinery margin
- Scroll down for a chart of the RBOB-WTI crack spread, a measure of refinery margin. It shows elevated cracks this year
- Total motor gasoline inventories rose by 2.7 MMBbl/d for the week ending June 2 and are about 8% below the five-year average for this time of year
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- Retail diesel prices fell by 25.1c in the last four weeks to $3.797/Gal. About 45% of the change was due to the price of crude oil, while the remainder was the refinery margin
- Scroll down for a chart of the NY Harbor ULSD-WTI crack spread, a measure of refinery margin. It shows elevated cracks this year
- Distillate fuel inventories rose by 5.1 MMBbl/d for the week ending June 2 and are about 16% below the five-year average for this time of year
- EIA Sees Potential Dip in US Diesel Demand Amid Declining Manufacturing Activity
- The EIA forecasts that US diesel demand will slow down in the rest of 2023 and into 2024
- The slowdown is due to the service sector becoming the main driver of US economic growth, and the service sector requires less diesel consumption than the manufacturing sector
- The agency sees diesel demand for 2H2023 to be below the 2015-2019 average and then fall further in 2024
- The EIA expects US GDP to grow over the next 18 months, but downward trends in transportation and manufacturing indicators will contribute to lower diesel consumption
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