API: US petroleum deliveries rose in August

Total US petroleum deliveries, a measure of demand, increased 1% from August 2013 to average 19.3 million b/d last month, recording the highest August deliveries in 3 years, according to the American Petroleum Institute’s monthly statistics for August.

“Petroleum demand last month showed slow but steady growth, mirroring economic indicators for domestic manufacturing, air travel, and job creation,” said API Chief Economist John Felmy. “Domestic crude and refinery production also remained quite strong.”

Thanks to record production in North Dakota and Texas, US crude oil production reached an average of just above 8.6 million b/d, up 15.5% from August 2013 and also the highest August output in nearly 3 decades. Natural gas liquids production rose by 13.6% from the prior year to average a new all-time record high of nearly 3.1 million b/d.

The latest report from Baker Hughes Inc. stated that the number of oil and gas rigs in the US in August was 1,904, up 28 units from July, and up 123 rigs from August 2013.

According to API’s numbers, gasoline demand was down 1.2% from August 2013 to average 9 million b/d, the lowest deliveries for the month since 2011. Demand for distillate and jet fuel was 2.7% and 2.3% higher than the previous year, respectively. Deliveries of “other oils” increased 7.3% over year-ago levels and were 24.9% of total deliveries. Residual fuel demand fell by 63.6% from August 2013 to 149,000 b/d, a new all-time record low.

Total US imports last month averaged 9.2 million b/d, hitting a 19-year August low on a 10.2% drop from the previous year. August imports of crude oil and refined products averaged 7.6 million b/d and 1.6 million b/d respectively, down 6.2% and 25% from last year.

Gasoline production last month averaged nearly 9.8 million b/d, a 4.6% gain from August 2013 and the highest August output on record. Production of jet fuel rose 3.2% from a year earlier to an August record of just below 1.7 million b/d. Distillate fuel production reached the second highest August level on record at nearly 4.9 million b/d, a 1.3% decrease from last year.

US refinery gross inputs and exports of refined products both set records in August. Refinery gross inputs rose by 2.3% from last August to average 16.7 million b/d while exports of refined petroleum products gained 7.5% to average just over 4 million b/d. The refinery capacity utilization rate averaged 92.9% in August. API’s latest refinery operable capacity was 17.934 million b/d.

Crude oil stocks ended last month at 360.1 million bbl, down 1.5% from the prior year level and the lowest August inventory since 2011. Stocks of motor gasoline ended down by 2.7% from last year to 211.7 million bbl. Distillate, jet fuel and “other oils” stocks were all down from year ago levels, with distillate hitting a 13-year August low.