API: US petroleum demand highest for August since 2007

Total US petroleum deliveries, a measure of petroleum demand, moved up 1.3% in August from a year ago to average 20.5 million b/d, marking the highest August deliveries in 10 years, according to data from the American Petroleum Institute.

Total US petroleum deliveries, a measure of petroleum demand, moved up 1.3% in August from a year ago to average 20.5 million b/d, marking the highest August deliveries in 10 years, according to data from the American Petroleum Institute.

Compared with July, total US petroleum deliveries decreased 0.6%. For year-to-date, total US petroleum deliveries moved up 1.3% compared with the same period last year.

The US economy continued to grow in August, adding 156,000 jobs, according to the US Bureau of Labor Statistics. The US unemployment rate and the number of unemployed persons increased slightly, up 4.4% and 7.1 million, respectively.

“Strong economic growth is boosting petroleum demand,” said Hazem Arafa, API director of statistics. “Meanwhile domestic production remains high allowing consumers and businesses to continue to enjoy relatively low fuel costs. This is a winning combination.”

Total motor gasoline deliveries, a measure of gasoline demand, decreased 1.5% from August 2016 to average 9.5 million b/d—but remained the fourth-highest deliveries to date. Compared with July, total motor gasoline deliveries decreased 1.5%. For year-to-date, total motor gasoline deliveries decreased 0.3% compared with year-to-date 2016 to the second highest year-to-date level at 9.3 million b/d.

Distillate deliveries in August were up from the prior month, the prior year, and the prior year-to-date to reach the highest August deliveries in 10 years and the highest deliveries since March. Distillate deliveries averaged 4.1 million b/d, up 6.5% compared with August 2016, and were up 0.7% compared with July. For year-to-date, distillate deliveries increased 3.2% compared to year-to-date 2016.

US crude oil production remained above 9 million b/d for the seventh consecutive month. US crude oil production in August decreased from the prior month but was up from the prior year and the prior year-to-date to reach the second-highest August output in 45 years, since 1972.

US crude oil production decreased 1.3% from July but was up 6.8% from August 2016 to average 9.3 million b/d in August. For year-to-date, crude production increased 2.4% compared with year-to-date 2016, and was the second highest year-to-date level since 1973.

Natural gas liquids production reached a record level last month. NGL production in August averaged 3.7 million b/d, up 1% from last month, 8.6% from last year, and 2.9% from last year-to-date.

According to the latest reports from Baker Hughes, the average US rig count for August decreased 0.6% from July but increased 96.9% from August 2016 to 947. This was the highest August count in 3 years, but remained the third lowest August count in 15 years. Year-over-year increases were seen for the eighth month straight.

US total petroleum imports decreased 2% from July and decreased 6.4% from August 2016 to average just below 9.7 million b/d in August. These were the lowest imports since November 2015.

For year-to-date, total petroleum imports were up 1.6% compared with year-to-date 2016. Crude oil imports decreased 7% from August 2016 to nearly 7.5 million b/d in August. These were also the lowest imports since November 2015. Compared with July, crude oil imports were 3.2% lower. For year-to-date, crude imports were up 3.1% compared with year-to-date 2016.

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