U.S. gasoline demand is ending the summer on a down note, contributing to what has already been a lackluster summer for retailers, the latest data from the Energy Information Administration show.

Gasoline products supplied - EIA's measurement of implied demand - averaged 8.922 million b/d during the week ended Friday. That was down 121,000 b/d from the previous week and 194,000 b/d lower than the same time last year. Over the past four weeks, demand has averaged 8.905 million b/d, 45,000 b/d lower than the same four weeks in 2025, the EIA data show.

High gasoline prices are helping keep a lid on demand, with prices now more than 90cts/gal higher than during the Labor Day holiday weekend last year.

EIA data show that implied gasoline demand only topped 9 million b/d in six weeks this summer, down from nine times during the same period last year.

Even with the weaker demand, U.S. gasoline supply has been under pressure all summer, thanks to continued strong export demand.

EIA reported U.S. gasoline inventories dropped by 1.2 million bbl to 205.7 million bbl. Inventories are now 6% below seasonal averages. Inventories have not fallen below 206 million bbl since November 2022. Exports were the reason for the drop, with supplies on the Gulf Coast (PADD 3) falling by 1 million bbl during the week to 76.2 million bbl. All regions in the U.S. are seeing supplies below year-ago levels.

Gasoline exports rose by 44,000 b/d during the week to 934,000 b/d while imports fell by 195,000 b/d to 370,000 b/d. Over the past four weeks, exports have outpaced imports by 411,000 b/d.

Gasoline production remains strong, averaging 9.845 million b/d during the week. While that was up by 73,000 b/d from the week before, it was also 27,000 b/d lower than the same week last year.

Distillate production also moved lower during the week, falling by 9,000 b/d to average 5.126 million b/d. That's 127,000 b/d lower than the same week last year.

Despite the decline in production, distillate inventories rose by 800,000 bbl to 104.2 million bbl but remain 14% below the five-year average, EIA said.

Distillate products supplied moved down by 449,000 b/d to 3.39 million b/d. That was 378,000 b/d below what was seen a year earlier.

Distillate exports fell by 55,000 b/d to 1.735 million b/d. Distillate imports also moved lower, falling by 63,000 b/d to 113,000 b/d.

U.S. refinery activity remains strong, with U.S. refineries operating at 98% of capacity during the week, up from 97.4% the previous week and the highest weekly rate since August 2018.

Gross inputs rose by 11,000 b/d to 17.661 million b/d. That's the highest weekly level since December 2019.

Total U.S. crude inventories fell by 7.6 million bbl during the week to 711.1 million bbl. That included a 3.1 million bbl drop in inventories held in the Strategic Petroleum Reserve, bringing supplies there to 286.6 million bbl, the lowest levels since November 1982.

Commercial crude inventories fell by 4.5 million bbl to 424.5 million bbl. Supplies, however, remain 1% above the five-year average, EIA said. Crude exports were up by 691,000 b/d to average 4.483 million b/d while crude imports rose by 612,000 b/d to 6.77 million b/d.

U.S. crude production rose by 19,000 b/d to 13.862 million b/d. That's tied for the highest weekly production ever, with production last this high in November.