August petroleum demand rose to five year high

Total petroleum deliveries (used as a measure of demand) rose by 0.8% y/y in August to an average of nearly 19.6 million bpd, according to API’s Monthly Statistical Report for August 2015. August crude oil production was the highest level for the month and the highest year to date level in 43 years, since 1972.

“US crude oil and gasoline production soared to record highs in August as the industry finds innovative ways to increase production even as crude prices have fallen,” said API Director of Statistics Hazem Arafa. “In fact, demand for and production of oil and refined products were the highest August in five years, since 2010.”

For year to date, total domestic petroleum deliveries rose 2.2% y/y.

Total motor gasoline deliveries rose y/y to just above 9.4 million bpd (1.1%). These were the highest deliveries since 2007. For year to date, gasoline deliveries rose 2.6% compared with year to date of 2014.

Distillate deliveries in August fell 3.0% from August 2014. Distillate deliveries fell 0.2% y/y to just above 4.0 million bpd.

US crude oil production rose above 9 million bpd for the 11th month in a row. At an average of 9.3 million bpd, domestic crude oil production in August rose 5.4% y/y. Domestic crude oil production rose by 10.6% y/y.

Natural gas liquids (NGL) production rose from the prior year, averaging nearly 3.3 million bpd, which was the highest August level on record. NGL production rose by 9% y/y.

According to the latest reports from Baker-Hughes Inc., the number of oil and gas rigs in the US posted for the first time in four months a month over month increase to 894 in August. This was up 3.2% from the previous month but remained below year-ago levels for the eighth straight month, down by 53.0%.

Edited from press release by Angharad Lock

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