Gasoline and diesel demand continue to rise slowly and are even beginning to approximate “normal” levels. Hurricane Laura threatened to disrupt key nodes of the U.S. oil and gas complex, but both Port Arthur and Houston appears to have been largely spared. Hurricane Laura proved weaker than feared, and the U.S. oil complex will face only minor disruptions.

Normal Would Be Nice

For the first time since March, both gasoline and diesel demand have recovered to within their “normal”, 5-year max-min band. Gasoline stocks are also gradually returning to normal levels, with gasoline days-of-supplies (as calculated by the EIA) down to 27.1 days, down from 49 days in late April. Diesel demand of ~4.0 Million Barrels Per Day (MMBPD), meanwhile, is slightly above five-year averages. As has been the case since March, however, jet fuel demand is lagging other crude products. While the TSA reports airline demand continues its slow recovery, passenger throughput is still 65-75% lower than year-ago levels.