U.S. consumers will face tight gasoline supplies through the upcoming summer driving season, and crude oil imports will need to average a hefty 10 million barrels a day so refiners can supply more motor fuel, the government warned Thursday.
"With gasoline inventories already below the bottom end of the normal range ... it is difficult to see how gasoline markets will not remain tight, at least through this upcoming summer driving season," the U.S. Energy Information Administration said in its weekly report on the oil market.
The Energy Department's analytical arm pointed out that gasoline inventories during January fell 700,000 barrels, when they traditionally increase by about 12.4 million barrels.
As stock levels dropped the average January gasoline pump price hit a record high for the month. "With prices continuing to increase in February, it is very apparent that the U.S. gasoline market is tight," the agency said.
Gasoline stocks are expected to drop in February and March as terminals clear out their winter-grade gasoline to make room for summer-grade fuel that does a better job of fighting pollution, the agency said.
U.S. oil imports need to average about 10 million barrels a day as spring approaches so refiners will have enough crude to process into gasoline and meet driving demand, the weekly report said.
Over the last month the four-week moving average for oil imports has been relatively flat at about 9.4 million barrels per day.