Seasonal demand, output of US refined products hits eight-year high: API

Total US petroleum deliveries (a measure of demand) grew by 2.2% from July 2014 to average nearly 19.6 million bpd last month, according to the American Petroleum Institute's (API) monthly statistical report, released on Friday.

“Demand for and production of oil and refined products grew across the board over the last year,” said API chief economist John Felmy. “In fact, demand for and production of oil and refined products were the highest July in eight years, since 2007.”

Gasoline demand rose by 2.1% from July 2014 to just above 9.4 million bpd, and distillate demand rose 1.1%.

At an average of 9.5 million bpd, US crude oil production increased by 8.8% from July 2014. This was the highest July level since 1920 for crude oil production.

Natural gas liquids (NGL) production averaged nearly 3.4 million bpd, which was the highest for the month on record and set the new all-time record production level.

According to the latest reports from Baker-Hughes, the number of oil and gas rigs in the US in July was 866, 53.8% below the year-ago level. Last month’s count was the second lowest count since January 2003.

US total petroleum imports in July averaged nearly 9.4 million bpd, down 1.0% from the prior year. Meanwhile, crude oil imports in July were down compared with the prior year, falling by 5.5% from July 2014 to average 7.2 million bpd.

At an average of nearly 10.0 million bpd, production of gasoline in July was the second highest level ever for the month. Production of distillate fuel in July rose by 1.6% from the prior year to reach an average output of 5.1 million bpd, the second highest July level ever.

Refinery gross inputs in July rose by 0.1% from last year to reach a record high for the month at nearly 16.9 million bpd. Exports of refined petroleum products were up over the same period.

The refinery capacity utilization rate in July averaged above 90.0% for the fourth consecutive time this year at 94.0%. API’s latest refinery operable capacity was 17.956 million bpd.

Crude oil stocks ended in July averaging at nearly 460.0 million bbl, representing the highest July inventory level since 1930. Stocks of motor gasoline ended down by 0.2% from last year, to 216.5 million bbl. Distillate, jet fuel, and “other oil” stocks were all up from year-ago levels.