U.S. Petroleum Consumption Mounts, but Delta Variant Threat Looms Large

Domestic crude production held steady while demand for U.S. petroleum continued to rise last week, alongside increased summer travel and greater consumption of motor gasoline, the U.S. Energy Information Administration (EIA) said.

The fast-spreading Delta variant of the coronavirus presents increasing risk to Americans’ mobility – risk that could once again diminish demand for travel fuels derived from oil, said Mizuho Securities USA LLC’s Robert Yawger, director of energy futures. To date, however, crude consumption is steady and well above year-earlier levels.  

Overall demand for the week ended Aug. 20 rose 2% week/week, EIA’s Weekly Petroleum Status Report showed, boosted by motor gasoline purchases. That followed a 10% increase the previous week. While uneven from...