Motorists are driving more despite higher fuel prices
May 23, 2022
WTI crude oil price rose 2.5% for the week but appeared rangebound and caught between slower economic growth due to strict monetary policy (rising interest rates) and current short fuel product supplies worldwide. China lifting COVID restrictions could make supplies tighter.
Data from TomTom and Google indicates that driving is up despite higher pump prices.
Baker Hughes reported that oil rigs were up 13 to 576 oil rigs. Last year at this time, the US only had 356 oil rigs online.
In April, Reuters reported that crude oil imports to India reached a three-and-a-half-year high as the third-largest oil importer purchased a significant amount of Russian crude at a discount.
US crude oil inventories are 14% below the five-year average. Gasoline inventories are 8% below the five-year average. Distillate inventories are 22% below the five-year average and propane inventories are 10% below the five-year average.
The Biden administration is looking into releasing diesel supplies from reserve to try and ease prices. President Biden has also said he may reduce tariffs on China, and he called on OPEC to pump more oil.
Energy prices are mixed and had have traded both positive and negative already as we start a new week.