API: US petroleum demand highest for July since 2007

Total US petroleum deliveries, a measure of US petroleum demand, moved up 4.9% in July from a year ago to average nearly 20.7 million b/d, the highest July deliveries in ten years, according to data from the American Petroleum Institute.

Compared with June, total domestic petroleum deliveries increased 1.6%. For year-to-date, total deliveries moved up 1.3% compared with the same period last year.

The overall economy in the US showed gains in July, adding 209,000 jobs, according to the Bureau of Labor Statistics (BLS). The US unemployment rate and the number of unemployed persons remained essentially unchanged at 4.3% and 7 million, respectively.

“Strong demand for petroleum is a good sign for the economy, which grew for the 98th consecutive month,” said API Director of Statistics Hazem Arafa. “American workers and consumer continue to benefit from these positive economic signs along with relatively low fuel prices.”

Gasoline deliveries were up from the prior month and the prior year to reach an all-time high in July. Total motor gasoline deliveries, a measure of consumer gasoline demand, increased 1% from July 2016 to average nearly 9.7 million b/d. Compared with June, total motor gasoline deliveries increased 0.8%. For year-to-date, total motor gasoline deliveries decreased 1% compared with year-to-date 2016, the second highest year-to-date level at 9.2 million b/d.

Domestic crude oil production in July increased from the prior month, the prior year, and the prior year-to-date to reach its highest July output level in 45 years. Domestic crude production increased 0.9% from June and was up by 8.6% from July 2016 to average 9.4 million b/d in July. US crude production has been above 9 million b/d for the sixth consecutive month.

For year-to-date, crude production increased 2% compared with year-to-date 2016 and was the second highest year-to-date level in 44 years. Natural gas liquids production was up from the prior month, the prior year, and the prior year-to-date. NGL production in July averaged nearly 3.7 million b/d, up 1% from last month, 2.6% from last year, and 3.1% from last year-to-date. This was the highest July output level on record.

US total petroleum imports decreased 3.8% from June and decreased 6.2% from July 2016 to average just below 9.9 million b/d in July. These were the lowest imports for the year. For year-to-date, total petroleum imports were up 2.7% compared with year-to-date 2016. Crude oil imports decreased 4.8% from July 2016 to 7.7 million b/d in July.

Compared with June, crude imports were 3.5% lower. For year-to-date, crude imports were up 3.9% compared with year-to-date 2016. Refined product imports decreased 4.8% from the prior month and decreased 10.9% from the prior year to nearly 2.2 million b/d in July.

Compared with year-to-date 2016, refined product imports were down 1.4%. These were the lowest July imports in three years.