Gasoline consumption in the United States has just hit a big milestone. It is now more than halfway back to pre-Covid-19 levels as drivers get back on the road again.
According to the Oil Price Information Service (OPIS) gasoline sales have been rising at an average of 6.4 % per week since the low point in April when demand was “sliced in half.”
“There is still more ground to cover, but the positive trends are a sign of recovery,” said Fred Rozell, president of OPIS.
In a release, OPIS fill-ups at the pump hit the rock bottom in the second week of April, down 49% from 2019 volumes, as spiking Covid-19 cases led to the shutdown of the economy and stay-at-home orders across the nation.
That was also the week that oil exporting countries hammered out the OPEC+ deal—with the direct involvement of the United States—to reduce production in a greatly oversupplied market experiencing record-low crude prices.
The most recent OPIS survey shows that in the second week of June demand was down 22%, compared to the same week in 2019, but regional disparities are still prevalent.
“Although people talk about ‘demand destruction’, it’s actually been ‘demand contraction’ in response to the economic shutdown,” said Daniel Yergin, vice chairman, IHS Markit. “And now we’re seeing demand ‘uncontracting’ as people get back into their cars.”
