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EIA: US gasoline demand in may hits lowest seasonal level since 202020

The Energy Information Administration reported on Thursday that the U.S. gas demand for May was the lowest since the coronavirus outbreak of 2020. This indicates consumers are cutting back on fuel purchases, despite the lower price.

The EIA proxy for demand is the product supplied of finished motor gas, which averaged 9.06 million barrels per day in May. This represents a 3.6% decrease from last year.

Donald Trump, the U.S. president, has claimed credit for lowering gas prices. They had risen to a record-high in 2022 because of supply disruptions due to Russia's invasion.

Analysts have stated that the decline is partly due to the economic uncertainty caused by Trump's policies.

The latest figures show that gasoline prices have fallen 8.3% in the 12 months ending June.

Consumer Price Index Report

The U.S. crude oil prices fell more than 20% as a result of concerns about a lackluster demand, and the trade war between China and the United States.

Patrick De Haan is head of petroleum analyses at GasBuddy. He said, "Uncertainty to me, is the bigger issue."

He said that the tariff/trade situation had left consumers feeling pessimistic. "Look for the figures from May to rebound in June/July, but I doubt that they will be any better than 2024."

The EIA reported that the average gasoline demand in May of last year was 9.40 million barrels per day, the highest since the pandemic. Shariq Khan, New York (Reporting and Editing by Marguerita Chôy)

(source: Reuters)