Gasoline Fuels The Tanker Market

24 Jul 2015: U.S. Gasoline demand drives strong refining margins.  The U.S. economy is humming along and as a result of the significant drop in oil prices over the last 12 months, gasoline has become relatively cheap. And, as the IEA noted in their latest report: “Few consumers love a low oil price more than the American driver.” In the U.S., gasoline demand increased by 362 kb/d (4.2%) in 2015 relative to 2014. Car buyers have also taken notice. With deliveries of 8.5 million vehicles through June, U.S. car sales are on target to approach the previous annual record of 17.4 million. The biggest increases are in the larger SUV/Cross-over vehicles. At the moment, the summer driving season in the U.S. is in full swing and surging American gasoline demand is beefing up refiners’ earnings worldwide. As a result of high margins, facilities worldwide are running flat out. The good times are back, at least for now, but this situation may not be sustainable. What happens if the music stops? Download here