Weak Demand Threatens Oil Rally
Gasoline supplies in the US are at record highs but motorists are easing back on the pedal—this weak demand could hurt oil’s tenuous rebound.
Refineries nationwide are working overtime and the East Coast is flooded with oil imports, yet demand for oil fell from the 9.49 million barrels a day forecast from weekly data to 9.21 million barrels a day for the whole of April, Bloomberg reports.
Energy analysts are worried about the drop in demand, saying it raises doubts over whether the US economy has robust enough gasoline demand to support the entire oil complex. At the same time, oil is becoming less profitable—the crack spread dropping to $14.58, its lowest point since February. [Bloomberg]