US petroleum markets continued to gradually improve in July with inventories backing down from record highs and demand posting its third consecutive monthly increase since April, according to data released today in the American Petroleum Institute’s (API) July 2020 Monthly Statistical Report (MSR).
“Although the market remains uncertain, we saw encouraging signs in July with gradual rebalancing of oil supply and demand,” API Chief Economist Dean Forman said. “Increases in US refinery throughput and capacity utilisation in July – coupled with inventories receding from record highs – has reinforced expectations for the continued demand recovery.”
Led by motor gasoline, total US petroleum demand rose to 18.3 million bpd in July, up 0.7 million bpd from the month prior but still down nearly 12% year-over-year. Meanwhile, jet fuel deliveries posted their second consecutive monthly increase, surging more than 44% between June and July and nearly 70% since May.
On the supply side, July marked the fourth consecutive month of year-on-year declines in US crude oil production, which averaged 10.3 million bpd for the month. The declines are consistent with the steep drop-off in oil-directed drilling activity, which has fallen to its lowest level since July 2009. By comparison, US natural gas liquids production increased 3.8% in July to 4.9 million bpd in July – a record high for the month of July.
Read the article online at: https://www.hydrocarbonengineering.com/refining/24082020/api-market-conditions-improving/