Total petroleum deliveries (a measure of demand) fell 2.6 percent the first six months of 2012 compared with the same period a year ago – and were down 3.0 percent in June from June 2011. Gasoline demand tracked the overall numbers, declining 2.5 percent for June versus a year ago and 1.0 percent for the first six months of this year against the same period in 2011. Distillates, jet fuel, and residual fuel were also down for the first six months, while distillates and residual fuel were down for June. Jet fuel demand in June rose 0.7 percent over June a year ago.
“A weakening economy requires less fuel, and this by most measures is a weakening economy,” said API chief economist John Felmy. “The fall in demand in June is particularly notable and consistent with other disappointing metrics in the economy, including falling retail sales and contraction in the manufacturing sector.”
Supplies of refined products were ample. U.S. refinery production in June was up for the major products, excluding gasoline, which was down for the second month in a row. Total refinery inputs for June were up 2.8 percent to nearly 15.8 million barrels per day, the highest level so far this year. Because of weak demand, exports of refined products in June increased by 17.8 percent. Year-to-date exports were up by 14.2 percent.
For the first time since July 2011, refinery utilization rose above 90.0 percent for the month. At 91 percent, utilization in June was up 5.1 percentage points from last month.
Total imports of crude and refined products fell in June by 6.0 percent to average 10.9 million barrels per day. For the first half of the year, they declined by 6.9 percent compared with the same period a year ago. Refined product imports were below export levels through the first half of the year. Canadian crude imports made up nearly 25 percent of total crude oil imports for the month.
Domestic crude oil production in June rose by 1.2 percent from May and 10.7 percent from June a year ago to average almost 6.2 million barrels per day, the highest June level since June 1998. For the ninth month in a row, monthly U.S. crude oil production exceeded production the same month one year ago.
The number of oil and gas rigs decreased from 1,977 in May to 1,972 in June, according to the latest reports from Baker-Hughes Inc.
At the end of June, crude oil stocks at 382.4 million barrels were up 6.7 percent from last year and down 0.4 percent from May levels. June gasoline stocks were down 4.0 percent from a year ago but up 0.6 percent from month ago levels.
API represents more than 500 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America’s energy, supports 9.2 million U.S. jobs and 7.7 percent of the U.S. economy, delivers more than $86 million a day in revenue to our government, and, since 2000, has invested over $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.
Source: API (American Petroleum Institute)