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U.S. Gasoline Demand Cracks Deepen as High Prices Persist

Published 03/31/2022, 12:58 AM

(Bloomberg) -- High pump prices appear to be deterring U.S. drivers at a time when gasoline demand typically picks up with warmer weather.

A third straight weekly decline in gasoline demand brought the rolling four-week average to 8.76 million barrels a day last week, down by more than 4% compared with the same time in 2019, data from the U.S. Energy Information Administration show. 

Pump prices have hovered above $4.20 a gallon since hitting a record high earlier this month after Russian’s invasion of Ukraine tightened global oil supplies. High fuel costs are a key component of surging inflation and have become a key political challenge to President Joe Biden.

The U.S. driving season typically begins in March with spring break and lasts through the summer. The drop in demand helped lift U.S. gasoline stockpiles above prior-year norms.

©2022 Bloomberg L.P.

 

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