US demand for gasoline may be falling

American refiners are facing the prospects of weakening gasoline demand for the first time in five years, stoking fears earnings this year may be worse than the dismal performances seen in 2016.

The sign of weakening US gasoline demand comes as US refiners are in the midst of reporting their worst year of earnings since the US shale boom started in 2011. The oil boom turned to bust in 2014, and US independent refiners reaped the profits as plunging pump prices and a growing economy helped fuel a surge in demand.

US refiners amassed large inventories that punished margins last year, but record gasoline demand and robust exports helped provided a firewall against further slippage. Now the industry faces the prospects of higher crude prices following global production cuts and fresh federal data that suggest their gasoline demand safety net may be eroding.