Oil demand saw the biggest weekly decline in 14 years, to a new 13-year average low of 17.653 million barrels a day, according to the Energy Information Administration. Lack of gasoline demand is a big culprit, as drivers cut back, sending gasoline demand to a decade low.
Gasoline's Epic Summer?
At the same time, Citigroup's Seth Kleinman says at a conference in London Thursday that it will be an "epic summer" for gasoline prices, due to U.S. and European refinery shutdowns that could hit supply during peak driving season.
But today's action in RBOB on the NYMEX shows gasoline futures slipping on worries about that falling demand. Gasoline stocks rose by three million barrels last week, well above the anticipated 200,000 barrels. Traders see fodder for more refinery capacity reductions.
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