Gasoline stocks on the US Atlantic Coast plummeted the week ended March 23, dropping to a four-month low on a continued draw for winter-grade barrels, US Energy Information Administration data showed Wednesday.
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Inventories fell 3.32 million barrels to 56.35 million barrels, the lowest total since the week ended November 24. The decline was led by the lower Atlantic sub-region, where stocks fell 2.64 million barrels. That was the largest week-on-week drop for that area since the week ended November 4, 2016.
The entire Atlantic Coast is currently in the late stages of transition to summer gasoline from winter-specification grade. It is common for suppliers to draw down inventories as they prepare to build stocks for lower-RVP product.
Cash prices last week reflected the inventory pull, with 13.5 RVP RBOB climbing 2.40 cents/gal from March 19-23.
Regional gasoline production also fell, as refinery utilization rates dropped 2.9 percentage points to 77%. Production dipped 8,000 b/d to a four-week low of 3.10 million b/d.
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