Warm January balances U.S. products demand

The American Petroleum Institute reports warm January temperatures had a dual effect on the U.S. petroleum market, reducing heating oil demand while increasing gasoline use as motorists traveled more in the fair weather. As a result, total U.S. petroleum product deliveries averaged 18,569,000 b/d, about the same as a year ago. API said January gasoline deliveries jumped almost 6% to 7,747,000 b/d from the same month last year. Distillate (heating oil and diesel fuel) demand fell 3.6% to an

March 2, 1998

2 min read

As a result, total U.S. petroleum product deliveries averaged 18,569,000 b/d, about the same as a year ago.

API said January gasoline deliveries jumped almost 6% to 7,747,000 b/d from the same month last year. Distillate (heating oil and diesel fuel) demand fell 3.6% to an average of 3,643,000 b/d. Demand for kerosine jet fuel and for residual oil also declined.

Overall weak U.S. demand reduced the draw on stocks of products.

Crude oil production in the Lower 48 was up 3.3%, but fell 10.9% in Alaska because of technical problems. Crude oil production averaged 6,312,000 b/d, down a scant 0.2% for the month compared with a year ago.

Refined products

API said January U.S. gasoline deliveries averaged 7,747,000 b/d, up 5.9%, the mild winter being a major factor. A year ago, driving conditions were unfavorable. Other factors that pushed up demand were the robust economy and gasoline prices that were 17¢/gal lower than a year ago.

Distillate deliveries fell 3.6% to 3,643,000 b/d. Heating oil demand fell, but transportation demand, tied to growing economic output increased diesel fuel use.

Kerosine jet fuel deliveries dropped 3.4% to 1,570,000 b/d. Fuel demand for commercial jet travel was up, but there was weak demand in January for that amount of jet fuel that usually is blended with distillate, a method used to improve the flow of diesel fuel and heating oil in colder areas of the nation.

Residual (heavy oil) deliveries averaged 843,000 b/d, down 14.2%, primarily because the warmer temperatures reduced demand.

Refinery utilization was the highest for January in at least 20 years-93% vs. 89.3% in January a year ago. Input to crude distillation units was up 6.3%.

Gasoline output was up 7%, and distillate production was up 11% for the month compared with January 1997.

U.S. imports of crude and petroleum products in January were 9,812,000 b/d, up 1.9% from a year ago. Crude oil imports were up almost 10% from year-ago levels, while imports of products continued to decline.

Stocks of crude and products were 1,015,000,000 bbl at the end of January, up 0.5% from the end of December and up 8.1% from a year ago.