Petroleum Demand Shows Growth

Total petroleum deliveries (a measure of demand) rose 2.5 percent in October compared with October a year ago.  While motor gasoline demand slipped by 0.3 percent, distillate deliveries showed robust growth, increasing 12.3 percent over October 2010.  Jet fuel deliveries were also up.  Residual fuel deliveries fell 45 percent against October a year ago. 

“Weaker gasoline demand is consistent with the disappointing consumer confidence numbers we’re seeing,” said API chief economist John Felmy.  “But our economy is growing modestly, and the overall demand numbers support that.”  

U.S. refinery gasoline and distillate production were at a record highs – up 4.0 percent and 4.9 percent respectively – for any October and on a year-to-date basis.  Jet fuel production showed double digit production increases while residual fuel production fell slightly in October.  Refinery inputs were down in October compared with a year ago.   

Total petroleum imports were down for the month of October from last year by 2.8 percent, at 10.8 million barrels per day.  Crude imports in October jumped by 7.7 percent to 9.2 million barrels per day while product imports fell by 37.4 percent to 1.6 million barrels per day.  Exports of petroleum products jumped 37.6 percent against October of last year.           

Crude oil production increased by 1.7 percent to 5.7 million barrels per day in October, establishing a 10-year high for the month.  On a year-to-date basis, production was up by 2.4 percent.  The total number of oil and gas rigs crossed 2,000 in October for the first time in three years, increasing by 39 from September to 2,017, according to the latest Baker-Hughes Inc. report.       

In October, crude oil and key refined product inventories fell from the prior month and the prior year.  Crude oil stocks were at 339.9 million barrels, a drop of 7.5 percent from last year but at their highest October levels since 1994, with the exception of October 2010.  Gasoline inventories at the end of the month totaled 207.9 million barrels, a drop of 0.9 percent from last October and a three-year low.  

API represents more than 480 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America’s energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $86 million a day in revenue to our government, and, since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.   

(API, Edited by Topco)