U. S. gasoline and diesel demandsreached a seasonal low observed since COVID

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Demand for gasoline and diesel in the United States has plummeted to its lowest seasonal point since the start of the COVID pandemic, according to the Energy Information Administration (EIA), raising concerns about stagnant economic activity as refining margins hit record highs. in a matter of months, Reuters reported.

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The data also showed that demand for distillates fell to 3. 6 million b/d, which is also a seasonal low not seen since the pandemic. Also, for the first time in about three months, the crack 3-2-1 spread. which serves as a barometer for refining markets, trading below $26. 50 a barrel on Wednesday, Reuters reports, representing the lowest crack spread in 3 years.

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These figures are also sparking debate about whether economic activity is slowing or whether renewables are stepping up their game in the quest to overtake fossil fuels.

“The gas scenario is going to be scrutinized by everyone and it definitely disappointed,” Mizuho analyst Robert Yawger told Reuters, adding that “while this is indicative of the functionality of the economy, it is bad everywhere. “

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Crude oil prices lost more ground on Wednesday following the EIA’s weekly stockpile report, which showed a decline of 1. 4 million barrels during the week to May 3, but after a significant increase of 7 million barrels over the past week put downward pressure on prices. . .

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