API: July Oil Product Deliveries Dip 3% From 2008; Other Metrics Rise
August 21, 2009 // Published as a news service by IHS
The American Petroleum Institute (API) reported that July oil product deliveries dropped 3% from July 2008, slowing the rate of decline of deliveries by half compared with the first half of 2009.
The July 2009 decline was highlighted by a 12% drop in jet fuel deliveries (to the lowest level since July 1993) and a more than one-fourth dip in residual oil deliveries.
However, gasoline deliveries rose a modest 0.8% and distillate fuel oil deliveries (including diesel fuel) marked the first month in almost two years without a significant dip.
"The data are consistent with reports the economic downturn may be flattening out," said Ron Planting, manager of information and analysis for API.
"However, U.S. oil demand is still significantly below where it was a year ago."
Weaker demand was also reflected in declining refinery output, except gasoline output which rose 2.8% from a year ago.
Year-to-date gasoline production was also the second-highest ever, said API. July's average utilization rate at U.S. refineries, at 84% of capacity, was at the second highest level since November, and remained nearly 20% points above the average utilization rate across all U.S. manufacturing industries.
The utilization rate, however, was down from last year's level.
API reported that inventories of most major products rose during July, with some products with the weakest demand reaching recent-year record levels. The largest volume increase was for jet fuel. Gasoline inventories rose slightly over 3 million barrels to a level about 4% above the average for the last five years.
While the year-to-date average for U.S. crude oil production was close to 3% higher than a year earlier, July production dropped for the first time since October as pipeline maintenance slowed production in Alaska, said API.
Lower-48 production continued its year-to-year gains in July, and U.S. production for January-June averaged 5.26 million barrels per day, the highest for the same period in four years.
July’s U.S. petroleum imports fell 10.3% compared with a year ago, with similar declines for both crude oil and products. Year-to-date petroleum imports, at 12.0 million barrels per day, hovered more than 1 million barrels per day lower than one year earlier, and 1.7 million barrels per day less than the record January-July level set in 2006.
Source: American Petroleum Institute (API).