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API: total US petroleum demand topped 20.8 mb/d in July, highest since 2005; on-road fuel demand down

Total US petroleum demand averaged 20.8 million barrels per day (mb/d) in July 2019, which represented a 0.9% year-over-year increase and the highest demand for the month since 2005, according to the latest Monthly Statistical Report released by the American Petroleum Institute (API).

This was a decrease of 0.9% from June but an increase of 0.9% compared with July 2018—and the highest demand for the month of July since 2005. Year-to-date through July, total petroleum demand averaged 20.4 mb/d, its strongest level since 2007.

The increase in demand came as the US continued to sustain world-leading production, which continues to meet virtually all global oil demand growth.

Consumer gasoline demand, measured by total motor gasoline deliveries, was 9.6 mb/d in July—a decrease of 1.4% from June and 0.4% compared with July 2018, even as gasoline prices were 3.6% below those of July 2018.

Year-to-date through July, gasoline demand fell by 0.4% y/y while regional consumption appeared to vary. Over the same period, demand for reformulated gasoline, which is consumed primarily in urban areas, decreased by 4.2% y/y to 3.0 mb/d. By contrast, conventional gasoline is used more in rural areas and increased 1.6% y/y to 6.3 mb/d.

In July, distillate deliveries of 3.9 mb/d fell by 6.2% from a record level in June but also were down by 1.7% compared with July 2018. Cumulatively through July, distillate deliveries were virtually unchanged from the same period one year ago, despite lower diesel fuel prices.

About 93.0% of distillate demand in July was for ultra-low sulfur distillate (ULSD). ULSD deliveries decreased by 1.4% y/y in July. The remaining 3.0% was high-sulfur distillate fuel (HSD), which is a heating fuel in the residential and commercial sectors and a marine fuel when blended to upgrade heavy fuel oil. In July, HSD deliveries of 99 thousand barrels per day (kb/d) decreased 14.7% compared with July 2018.

Other Highlights from the July 2019 Monthly Statistical Report include:

  • Sustained world-leading crude oil production at a record pace of 12.0 mb/d year-to-date.

  • Jet fuel demand for the month of July reached a new record of 1.8 mb/d.

  • Refining and petrochemical demand for liquid feedstocks, naphtha, and gasoil (“other oils”) was 5.3 mb/d in July, record demand for the month of July. This represented an increase of 2.8% from June and 5.0% above July 2018.

With the strength in consumer demand, domestic refineries processed crude oil at their highest utilization rates so far in 2019 (17.6 mb/d of throughput, utilizing 93.9% of capacity) and compensated for lower international demand for US petroleum exports.

Consequently, domestic West Texas Intermediate (WTI) crude oil prices averaged $57.36 per barrel in July, which was an increase of 4.9% ($2.70 per barrel) from June. However, WTI prices remained down 19.2% ($13.62 per barrel) compared with July 2018 ($70.98 per barrel), and US petroleum inventories grew to within 4.1% of the top of the 5-year range.

Comments

HarveyD

We are going the wrong way with major increases in bio-fossil fuel consumption?

SJC

As long as fossil fuels are considered affordable we will use them.
When you can not get them people get concerned.

mahonj

If they taxed gasoline in the US like the do in Europe, this would bring consumption down fairly quickly.
But there is zero chance of that happening.

The same would apply to aviation fuel, but that is even harder as planes can be refuelled at either end of short - medium journeys (not long ones, obviously).

Maybe you could have a carbon based landing tax in whichever countries (or blocks) chose to implement it. Given that you already pay landing charges, you could switch to a carbon based one and abolish the other.

Lad

What do you expect when policy continues to be created by politicians paid by the fossil fuel industries, i.e., Trump and the U.S. Senate.

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