Petroleum demand shows growth

Total petroleum deliveries rose 2.5% in October compared with October a year ago. While motor gasoline demand slipped by 0.3%, distillate deliveries showed robust growth, increasing 12.3% over October 2010. Jet fuel deliveries fell 45% against October a year ago.

‘Weaker gasoline demand is consistent with the disappointing consumer confidence numbers we’re seeing,’ said API chief economist John Felmy. ‘But our economy is growing modestly, and the overall demand numbers support that.’

US refinery gasoline and distillate production were at record highs, up 4% and 4.9% respectively, for any October and on a year to date basis. Jet fuel production showed double digit production increases while residual fuel production fell slightly in October. Refinery inputs were down in October compared with a year ago.

Total petroleum imports were down for the month of October from last year by 2.8%, at 10.8 million bpd. Crude imports in October jumped by 7.7% to 9.2 million bpd while product imports fell by 37.4% to 1.6 million bpd. Exports of petroleum products jumped 37.6% against October of last year.

Crude oil production increased by 1.7% to 5.7 million bpd in October, establishing a 10 year high for the month. On a year to date basis, production was up by 2.4%. The total number of oil and gas rigs crossed 2000 in October for the first time in three years, increasing by 39 from September to 2016, according to the latest Baker Hughes Inc. report.

In October, crude oil and key refined product inventories fell from the prior month and the prior year. Crude oil stocks were at 339.9 million bbls, a drop of 7.5% from last year but at their highest October levels since 1994, with the exception of October 2010. Gasoline inventories at the end of the month totaled 207.9 million bbls, a drop of 0/9% from last October and a three year low.

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