Refiners Cheer Good Start to U.S. Driving Season

Charles Kennedy, a writer for Oilprice.com, reported that U.S. gasoline consumption during the Memorial Day weekend, which marks the beginning of the U.S. driving season, increased by 2% compared to the same weekend last year. This rise in demand indicates potential good profits for U.S. oil refiners producing fuel. Lower gasoline prices this year, at $3.162 per gallon of regular gasoline nationwide, have contributed to the boost in consumption, being $0.40 cheaper per gallon than last year’s average of $3.568. The decrease in prices has driven more people to travel long distances over the holiday weekend, with a record number of 45.1 million travelers estimated by AAA, up by 1.4 million from the previous year. This surge in demand is attributed to the ample capacity of refineries to meet the gasoline demand, as stated by Patrick De Haan, head of petroleum analysis at GasBuddy. Lower crude oil prices have prevented the usual seasonal spikes in gasoline prices, making this Memorial Day weekend see the lowest gas prices since 2021. Additionally, refinery issues being resolved have led to a decrease in gas prices in the West Coast and Midwest regions.