Midwest Gasoline Supplies Hit Lowest On Record As Election Nears

Gasoline stockpiles in the Midwest have fallen to an all-time low, raising the threat of persistently high pump prices in the region just days away from a handful of crucial Senate elections.

Commercial gasoline supplies declined to 41 million barrels — the lowest on record — after falling by 1.2 million barrels last week, according to US Department of Energy data released Wednesday.

Retail pump prices in the Great Lakes recently soared after a surge in wholesale gasoline blendstock prices in Chicago, the regional benchmark. Production concerns weighed on the benchmark: an issue at a refinery crimped some output, while another facility owned by Cenovus Energy Inc. in Ohio is offline for regular maintenance.

In Michigan, prices averaged $4.69 a gallon on Wednesday, according to GasBuddy, down from highs of around $4.80 a gallon. In Ohio, prices stood around $4.30, also down slightly from last week. Both states have Senate elections next Tuesday that will be critical for deciding the balance of Congress’s upper chamber, along with Iowa, Minnesota and Nebraska.

Further relief may be on the way in spite of the tight supply picture. Chicago wholesale gasoline blendstock prices have fallen significantly, down to $3.09 a gallon from more than $4 a gallon. Meanwhile, Cenovus’s refinery in Ohio appears close to starting back up.

But stockpiles this low mean that any further flare-up might trigger similarly sharp price increases, with little spare fuel on the regional market. And even if no issues emerge, the tight market offers something of a floor to prices.