US fuel demand tanks amid low gasoline use - API
US petroleum deliveries in December 2011 were down 5.9% from December 2010, declining to an average of 18.6 million bpd to hit their lowest December level in 15 years, according to monthly data from trade group American Petroleum Institute (API).
The weakness was led by lower gasoline demand, which showed declines for both December and 2011 as a whole.
"The weakness in gasoline demand in 2011 reflected the overall weakness in consumer spending," said API chief economist John Felmy. "This carried through the year, with retail sales down in December and gasoline demand slipping more than four percent for the month."
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Overall, total petroleum deliveries (a measure of demand) fell 1.2% in 2011 to an average of 18.9 million bpd.
Except for 2008, this was the largest drop in annual domestic deliveries over the past decade, the API said.
Despite the decline in demand for refined products, supplies remained ample, with gasoline production for the year averaging a record high of 9.1 million bpd, up 0.5% over 2010.
Distillate production at 4.5 million bpd was up 6.1% for the year. Refinery inputs fell by 1.5% in 2011 compared with 2010.
Total petroleum imports dropped 5.6% in 2011 from the year before. Although up slightly in December, crude oil imports for the year fell by 3.4%.
Refined product imports decreased 14% for the year and were down more than 33% for December.
Total petroleum exports (almost all of which were product exports) were up 25.5% in 2011 compared with 2010.
Crude oil production rose 2.5% in 2011 to an average of 5.6 million bpd. In December, crude oil production rose by 0.5% to an eight-year high for the month.
The total number of oil and gas rigs stayed above 2,000 for the month, according to the latest Baker-Hughes report, and averaged 1,875 for the year, a three-year high.
Crude oil stocks ended the year slightly up from 2010 and were at a 17-year high for December. Motor gasoline stocks were also up in December 2011 from the prior month.
Distillate stocks, however, fell to a five-year low for December.
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