API Reports Growth in US Petroleum Demand in September
15 October 2010
US petroleum demand strengthened for all key refined products in September, indicating a shift from economic stagnation to economic recovery, according to the American Petroleum Institute’s Monthly Statistical Report for September.
September distillate deliveries rose 6.9% compared with September 2009, driven by a demand recovery in ultra-low-sulfur distillates, the type used for on-highway fuel, indicating a bounce in industrial activity toward the end of the third quarter. September ULSD deliveries averaged 3.1 million barrels per day, up 9.4% from the same month a year ago. For the first nine months of 2010, ULSD deliveries averaged 2.95 million barrels per day, a 2.4% increase over the first nine months of 2009.
Jet fuel demand in September jumped 11.6% from 2009 to average 1.6 million barrels per day, while September total gasoline demand ticked up 0.1% over the same month a year ago to average 8.9 million barrels per day.
US crude oil stocks stood at 363.1 million barrels at the end of September, 8.4% higher than 2009. Distillate fuel oil stocks were lower than a year ago. Moving into the winter heating season, total distillate inventories stood at 167.9 million barrels at end-September, down 2.8% from last year, with high-sulfur distillate, which includes heating oil, down 3.1% from a year ago, at 50.2 million barrels. Compared with the five-year average, end-September distillate inventories were up 18%, while high-sulfur distillate inventories were down by 1.7%.
While September refinery inputs slipped 1.2% from the September 2009, production for all petroleum products, except residual fuel oils, continued to grow. Gasoline output was up by 1.7%, and at 9 million barrels per day, was the highest level on record for any September. Distillate fuel production rose 2.7% from September 2009.
This could indicate that Americans are travelling more and more goods are being transported because USA's economic recovery is slowly taking place.
If it is so and unemployment remains high, per capita productivity must be going up. Higher (more) good and services productivity will have to be consumed locally or exported before more people are employed. Alternatively, less work (available) could or may have to be shared with reduced work week and reduced pay or continue with high employment. Either way, worldwide competition will force changes. We will have to learn how to be more competitive, to reduce imports, increase exports and increase employment.
Posted by: HarveyD | 15 October 2010 at 09:34 AM
There is in fact a significant recovery underway. With Wall Street reporting continuous record profits, increasing portion of these will be reinvested in expansion/employment.
Just in time for the elections.
Posted by: Reel$$ | 15 October 2010 at 11:57 AM
It appears to be more merely inventory rebuilding.
Posted by: Stan Peterson | 16 October 2010 at 10:25 AM
Stan: If inventory rebuilding is effectively taking place with less people employed, then productivity must be going up.
How can one get rid of overproduction?
- Export more, if you can be sufficiently competitive.
- Increase consumption of locally made goods and products.
- Ease credit (print $$$) and create another bubble.
- Reduce production and create more unemployment.
- Create many useful make work projects to reduce unemployment.
- Reduce speculation and unwarranted drain on economy.
An growing underlying problem called creed and speculation will siphon 30% to 40% out of the growing economy and make long lasting recovery a real challenge. Have your pick.
Posted by: HarveyD | 16 October 2010 at 01:08 PM