API: US product demand highest for October since 2007

Total US petroleum product deliveries averaging 19.9 million b/d reached their highest October monthly average since 2007, the American Petroleum Institute said in its latest monthly statistical report. Demand last month, which API expresses as products supplied, was 1.1% higher than October 2016’s average of nearly 19.7 million, with jet kerosene, motor gasoline, and residual fuel oil showing the largest year-to-year percentage gains.

Total US petroleum product deliveries averaging 19.9 million b/d reached their highest October monthly average since 2007, the American Petroleum Institute said in its latest monthly statistical report. Demand last month, which API expresses as products supplied, was 1.1% higher than October 2016’s average of nearly 19.7 million, with jet kerosene, motor gasoline, and residual fuel oil showing the largest year-to-year percentage gains.

Product deliveries through Oct. 31 totaled nearly 19.9 million b/d, 1.2% more than the nearly 19.7 million b/d during 2016 first 10 months. But product exports during October jumped 34.7% year-to-year to an average of more than 6.7 million b/d from nearly 5 million b/d a year earlier, API reported. Exports through Oct. 31 rose 13.8% to more than 5.9 million b/d from the 2016 period’s more than 5.2 million b/d average, API’s figures showed.

“The economy continues to grow as fuel demand remains strong and more people find work,” API Statistics Director Hazem Arafa said as API released its latest monthly statistics on Nov. 17. “Unemployment went down last month, and gasoline prices remain relatively low benefiting American businesses and workers.”

US crude oil and condensate production, meanwhile, climbed 7% year-to-year in October to an average 9.4 million b/d and 3.3% through Oct. 31 to more than 9.1 million b/d from the first 10 months of 2016. Natural gas liquids production also rose by 4.1% year-to-year during October to an average of nearly 3.7 million b/d, and by 4% to nearly 3.7 million b/d through Oct. 31.

Year-to-year declines in crude oil and gas liquids production during September reflected impacts from Hurricane Nate, API noted. It noted that according to the latest reports from Baker Hughes, the average US rig count for October fell 1.9% from September but increased 69.8% from October 2016 to 922 rigs working—the highest October count in 3 years.

Crude and product imports both decreased year-to-year during October but rose during the first 10 months. October’s average 7.3 million b/d of crude imports, excluding purchases for the US Strategic Petroleum Reserve, was the third lowest amount for the month in 22 years and 2.1% less than in September, API said.

Downstream, inputs to refineries’ crude distillation units rose by 3.3% year-to-year in October to an average 16.3 million b/d, and by 2.3% during the first 10 months from the comparable 2016 period to more than 16.8 million b/d. Refinery utilization rates also grew year-to-year to 87.8% in October and 90% through Oct. 31, API said.

Contact Nick Snow at nicks@pennwell.com.

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