- The oil market is still in a deficit.
- But U.S. oil demand continues to struggle. The core 3, gasoline/distillate/jet fuel, should have seen an increase in demand by now, but it didn't.
- Gasoline consumption is currently below that of 2021, so if we don't see an uptick by mid-June, then demand destruction from high prices is real.
- For now, oil inventories continue to trend bullish, and we remain bullish on oil going higher. Demand is just tainting the bull picture, so we do want to see this datapoint pick up.
For further details see:
U.S. Oil Demand Is Not Great, There's No Other Way To Put This