- U.S. oil demand is starting to show signs of recovery, but we are still below that of 2018/2019.
- Gasoline, distillate, and jet fuel demand are only matching 2021, so a further recovery is needed.
- Most likely scenario, in our view, going forward is for U.S. implied oil demand to lag 2019 by a touch. This will result in refined product storage to stay flat.
- Refinery margins will fall a bit and with higher throughput, crude prices should get a lift higher.
- Energy stocks should enjoy a period of higher and more stable prices (summer). We see the range being $115 to $130.
For further details see:
U.S. Oil Demand Starting To Recover, But More Is Needed