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Gasoline Inventories Fall; Demand Rises

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Bloomberg News

U.S. gasoline inventories fell for a third straight week, as demand rose to its highest level since reaching a 22-year high in June and refineries slowed production, an industry report showed.

Supplies fell 1.4% to 212.3 million barrels, the American Petroleum Institute said. The decline, about triple the size expected by analysts, left inventories 2.3% higher than a year earlier.

Demand for gasoline rose 0.3% to 9.44 million barrels a day, and production was down 2.7%. Demand reached 10.1 million barrels a day during the week ended June 29, the highest level since at least January 1979.

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“You’ve got production down, demand strong, stocks declining and the surplus shrinking,” said Tim Evans, energy analyst at IFR Pegasus in New York. “That should all translate to prices rising.”

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