Stocks of gasoline in the US Midwest contracted for the first time in three months in the week ended March 9, Energy Information Administration data showed Wednesday.
Last week Midwest stocks fell 817,000 barrels to reach 60.07 million barrels. This was the first decline in Midwest stocks since the week ended December 15, 2017.
Historically, Midwest stocks tend to build higher in January and February as the region prepares for seasonal turn around maintenance at local refineries. This is why, from 2015-2017, Midwest stocks hit their highs for the year in February.
S&P Global Platts refinery data shows that multiple Midwest refineries are in the midst of seasonal repair work including the consortium-controlled Wood River Refinery in Illinois, PBF's Toledo refinery, and HFC's refinery in Tulsa, Oklahoma.
With some local refineries under maintenance, Midwest refinery utilization fell from 89.8% of their total operational capacity down to 89.5%. This is more or less the same level of refining activity seen at this time last year, which the EIA reported at 90.7%.
Midwest stocks fell last week amid a decline in imports into the area, which fell from 21,000 b/d in the prior week to reach 14,000 b/d last week.
Midwest stocks also declined amid a healthy rise in US gasoline demand, as measured by product supplied, which rose 366,000 b/d. The EIA does not break this figure out by PADD regions and it is unclear what portion of this rise in demand came from the Midwest.
