Washington, D.C., 8 August 2022 (TDI): The US Energy Information Administration, updated the position of the government’s petroleum reserves showing a decline in Gas and oil prices.
The tariffs on gasoline have dropped dramatically over the last few weeks after striking a record high in Second Quarter in response to which President Biden stated, “Gas prices are now down by more than 90 cents a gallon. That’s over seven straight weeks of prices declining.”
Gas prices are now down by more than 90 cents a gallon. That’s over seven straight weeks of prices declining.
— President Biden (@POTUS) August 6, 2022
Comprehensive Statistics
Gasoline Inventories:
The volume of gasoline in storage rose by 0.2 million barrels (MMbbl), reaching 225.3 MMbbl overall due to low purchasing. At 225.3 MMbbl, stocks are 3 percent down the 5-year average for this stage of FY22 and are off 3.6 MMbbl from the preceding year or 1.6 percent.
Vis-a-vis the statistics, each area and its gasoline supply shrank as Eastern Coast (-1.0 MMbbl), Midwest (-0.0 MMbbl), Coast of the Gulf (+1.4 MMbbl), Rockies (-0.2 MMbbl), Pacific Coast (-0.0 MMbbl).
It’s crucial to keep track of whether sectors had gains or declines because this knowledge might sway pricing either high (in the event of declining inventories) or lower (in the case of rising inventories).
Inferred Gasoline Demand:
According to the EIA, indicated need (or “items provided”) to date in 2022 is 0.4 percent lower than in 2021. The weekly average for motor gasoline shipments was 609,000 BPD. Conversely, the United States exported 840,000 BPD of refined gasoline over the exact period.
Patrick De Haan, head of petroleum analysis at GasBuddy, a tech company reporting official fuel prices, responded, “The outlook is for a continued drop in most areas, however, some supply tightness in areas of the Northeastern U.S. could push prices up slightly until inventories rise, or imports do. For now, Americans are seeing prices nearly 90 cents lower than their mid-June peak and are spending close to $330 million less on gasoline every day as a result. As long as oil prices hold at these levels or lower, we’ll see another decline in most areas this week.”
The Q-2 of the year saw the U.S. economy shrink for the second successive quarter, typically regarded as a foreshadowing of a recession. Nevertheless, the National Bureau of Economic Research, the organization that officially evaluates whether the United States has entered a downturn or not, does not consider that into account.
The NBER examines a range of additional economic data points, including the employment rate, which has held steady this year.
Despite this, analysts are becoming more apprehensive about indications that individuals are scaling down on purchasing to deal with the highest inflation in 40 years. This has spurred a discourse concerning whether the state has inputted a recession or is sliding towards it.
