(Bloomberg) -- Demand for gasoline in the US jumped to the highest since 2019 in May, a sign the summer driving season started off stronger than initial figures had shown.
The amount of finished motor gasoline supplied — a proxy for demand — jumped to 9.396 million barrels a day, according to monthly estimates from the US Energy Information Administration. That’s the highest since August 2019, the summer before the Covid pandemic lockdowns.
The oil market closely monitors demand during the summer driving season in the US — the world’s biggest oil consumer — for clues about global consumption. The monthly figure released Wednesday is almost 400,000 barrels per day higher than what weekly figures from EIA signaled. If that trend persists, demand — which had already risen through June and July — could be more robust than traders are pricing in.
The robust gasoline consumption numbers have helped lift US oil demand to the highest seasonal level on record for May.
Demand for refined products in the US comes amid concerns about global demand, with analysts estimating that China’s post-pandemic recovery has hit its peak. On recent earnings reports, refining companies such as Phillips 66 and Valero have taken a more pessimistic view on demand as margins — or the profit generated from turning crude into gasoline — has decreased.
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