The U.S. Energy Information Administration released its "This Week in Petroleum" today. The full publication can be found here.

  • What's the verdict in a nutshell? U.S. gasoline inventories are up – reportedly 11% above this same time last year.

Gasoline consumption has been robust in the U.S. so far this summer, but according to the report, "[g]rowth in gasoline supply has exceeded the increase in gasoline consumption since last summer."

Why is this important to you? Two reasons:

1.  The increase in gasoline inventories has been linked to contributing to the recent decline in crude oil prices. In fact, The Wall Street Journal ran an article today entitled, "The Oil Price Recovery is Drowning in Gasoline" which stated that "[j]ust when it appeared crude oil's supply problems were easing, a glut of gasoline is drowning the market's hope for a recovery." Andy Lipow, Lipow Oil Associates in Houston, was quoted in the WSJ as saying, "[t]he relationship between oil and gasoline prices now is locked in a 'death spiral'."

2.  There is nothing the average consumer can do about it.  Prices at the pump are reportedly at their lowest level for this time of year since 2004 and according to the WSJ, "[e]ven a robust U.S. summer-driving season, which would normally send gasoline prices higher and suck up stockpiles of fuel, is unlikely to make a dent in inventories this time."

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