OREANDA-NEWS. US gasoline demand through will drift lower than previously estimated through the end of the year, despite falling prices, the Energy Information Administration said today.

Gasoline demand in the fourth quarter will average 9.09mn b/d, down by 0.5pc from an August forecast, the agency said in its latest Short Term Energy Outlook. Prices will fall to $2.03/USG in December before recovering slightly in 2016.

That would be the lowest December average for retail gasoline prices since 2004.

Prices will average $2.41/USG in 2015 and $2.38/USG in 2016, according to the latest forecast.

Low crude costs and the retail fuel prices that have followed have helped drive up gasoline demand for US refiners. Refiners expect that demand to persist through 2016.

But a recent update to 2014 data saw a sharper seasonal decline from the summer peak than in previous models the EIA said today. The revision lower was based on that data, rather than any immediate change in economic or weather forecasts that would affect fundamentals in 2015, the agency said.

Distillate consumption was also revised lower, by 0.8pc to 4.1mn b/d in the fourth quarter. Total demand in 2015 will average 4.02mn b/d, lower by 0.8pc compared to the August report, according to the EIA.