Oil Rally Threatened as Gasoline Supply Surge Swamps U.S. Demand

  • U.S. consumption revised lower while supply at seasonal high
  • Money managers cut bullish crude bets to lowest since March

Williston, North Dakota.

Photographer: Andrew Burton/Getty Images
Lock
This article is for subscribers only.

American drivers’ seemingly insatiable thirst for gasoline is running into a flood of supply.

Refineries across the nation are operating full-out and imports are pouring into the East Coast, boosting gasoline supplies to a record. At the same time, consumption has turned out to be less robust than thought. That’s weighed on prices, threatening to stem oil’s rebound from a 12-year low.