Winter Storm Prep Surges Gasoline Demand on Friday
The major winter storm taking aim at the East Coast is leading to a temporary surge in gallons sold at retail
Good morning and happy Saturday,
Friday gasoline demand surged in all regions of the country, but was particularly pronounced in PADD 1 as a major winter storm bears down on the region. According to GasBuddy data, Friday US gasoline demand jumped 17.1% from the prior Friday, and was 8.9% higher than the four week average. Broken down by PADD, we definitely see some winter storm influence from the prior Friday:
PADD 1 +26.9%
PADD 2 +14.9%
PADD 3 +9.2%
PADD 4 +10.2%
PADD 5 +9.9%
Indeed these numbers not only show that more motorists are taking off for the long weekend, as Monday is Martin Luther King, Jr. Day. The jump in PADD 1 and 2 makes sense, but demand elsewhere surging as it is comes as somewhat a surprise given the rise in Covid cases nationally. We'll keep watching the demand story play out, but expect demand destruction, primarily in PADD 1 as ice and snow are in the forecast for millions this weekend.