In February, API’s industry data showed petroleum demand of 19.8 million barrels per day (Mb/d) at its second highest for the month since 2020, a rebound in oil production and record level exports, with reductions in inventories and domestic refining activities when compared to January 2023.

The monthly growth in US petroleum demand was mostly a result of motor gasoline demand. Motor gasoline demand rose by 4.8% m/m from February, as urban demand increased by over 0.1 Mb/d m/m and rural demand by 0.3 Mb/d. Jet fuel demand weakened from January to February but remained within its 5-year average. Distillates demand fell by 4.4% m/m from January and by 12.0% y/y versus February 2022, apparently due to weaker freight trucking and an unseasonably warm winter, which reduced heating oil demand.

Though prices fell for finished motor gasoline and the US benchmark, and US oil rig count fell, domestic crude oil production picked up, improving by 0.5% m/m and 9.0% y/y. This most likely reflects strong productivity by existing wells, while new well additions assist in off-setting natural production declines, API said.

US total stocks (excluding the Strategic Petroleum Reserve, SPR) fell by 1.7 million barrels a day (Mb/d) as total petroleum net exports showed their second highest reading on record at 10.0 Mb/d and motor gasoline inventories declined by 12.6% m/m.