US gasoline demand during this year's first half fell 0.6% year-to-year to an average 8.88 million b/d, reflecting an ongoing sluggish US economic recovery, the American Petroleum Institute said. Deliveries, which API uses to measure demand, of an average 9.18 million b/d during June were the lowest for that month since 2004 and were 0.5% lower than a year earlier, it added.
"It's clear from the gasoline deliveries data that consumer confidence in the economy remains shaky," API Chief Economist John C. Felmy said. "This certainly supports API's position that increased taxes or other anti-jobs policies by Congress or the administration could increase unemployment and harm our economic recovery."
Meanwhile, distillate fuel oil demand, which API said tends to track economic output closely, rose from 2009 levels during both the month and first half. Low-sulfur distillate deliveries surged 12.1% year-to-year to an average 3.51 million b/d in June and increased 2.1% to 3.29 million b/d during 2010's first 6 months, it indicated in its latest monthly statistical report.
It said refinery operations continued to improve in June with increased production of every product except residual fuel oil. Inputs to crude distillation units rose for a fifth consecutive month to 15.3 million b/d, 0.6% higher than the previous month and 0.7% more than in June 2009. Inputs averaging 14.84 million b/d during the first half were 1.3% higher than a year earlier.
Refineries' 17.67 million b/d of total operating capacity remained flat in June from the previous month but was marginally higher than a year earlier, according to API. Their year-to-date operable capacity of 17.61 million b/d was down 0.3% from 2009's first 6 months, it added. Utilization rose year-to-year to 86.5% in June and 84.3% in the first half.
US production
US crude oil production, meanwhile, grew year-to-year during the month and first half. API's statistics showed it averaging 5.35 million b/d in June, 3.3% higher, and 5.47 million b/d year-to-date, a 3.5% improvement.
June's growth came in the Lower 48, where production climbed 3.9% to 4.8 million b/d. Production in Alaska declined 2.6% to 556,000 b/d during the same period as North Slope operators reduced output in the middle of the month, which they historically have done because some of their equipment is less efficient in the summertime, API noted.
It said crude oil imports, excluding purchases for the US Strategic Petroleum Reserve, rose 3.7% year-to-year in June to an average 9.42 million b/d, but declined 0.9% in the first half to 9.17 million b/d. Product imports dropped from 2009 levels during both periods (by 30.7% in June to 1.89 million b/d and 16.5% in the first 6 months to 2.41 million b/d).
Crude inventories at the end of June totaled 352.8 million bbl, 2% lower than a month earlier but 1.2% higher year-to-year, API's statistics indicated. The 220.2 million bbl of gasoline inventories were 0.8% higher than the total for the end of May and 2.9% than stocks at the end of June 2009. Low-sulfur distillate stocks totaled 111.6 million bbl, 3% higher than May's month-end figure and 3.2% less than the total at the end of June 2009, API said.
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