Total petroleum deliveries (a measure of demand) rose in June compared with May and with June a year ago and were up 1.9% for the first six months f 2011 over the same period in 2010. Gasoline demand was nearly flat compared with June a year ago, but up from both April 2011 and May 2011. Ultra low sulfur diesel demand continued to register strong numbers over 2010, achieving a record high.
‘The growth in overall demand is consistent with the nation’s modest but steady economic expansion,’ said API chief economist John Felmy. ‘Gasoline demand essentially treaded water while demand for ultra low sulfur diesel continued its year over year increase. Gasoline demand appears to still be held back by high unemployment and consumer uncertainty. On the other hand, the robust ultra low sulfur diesel demand numbers suggest US manufacturing is picking up the pace.’
US refinery gasoline production was at a record high for the month and for the year. For the month of June, distillate production was at a three year high while jet fuel production was at a six year high. Strong refinery production has reduced the need for petroleum product imports, which declined more than 30% in June compared with June a year ago. Crude imports declined 4.8%, and total imports fell 10%.
Crude oil production fell to a two year low and showed year over year declines for the second month in a row. At 5.4 million bpd, crude oil production was down by 2% from June 2010. For the second quarter, crude production was down by 0.1%. The preliminary reported data to API on offshore oil wells drilled show an 82% decline in the second quarter of this year compared with last. Despite the offshore drilling decline, API estimates onshore oil well completions, which include wells drilled on private as well as public lands, were at the highest second quarter level since 1985.
Crude stocks (excluding SPR) fell by 2.9% from the prior month and 1.5% from the prior year, but were still at the second highest stock level for any June since 1990, not counting 2010. With the exception of jet fuel stocks and residual fuel stocks, all key refined products’ stock levels showed declines in June compared with May.
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