News | November 16, 2018

Bolstered By A Strengthening Economy, U.S. Sets New Record For Petroleum Demand In October

The American Petroleum Institute’s latest monthly statistical report showed U.S. petroleum demand in October was 20.8 million barrels per day (mb/d), the strongest for the month since 2006. The U.S. also set October records for gasoline demand at 9.5 mb/d; refining and petrochemical demand for liquid feedstocks, naphtha, and gasoil at 5.1 mb/d; and, refinery throughput at 16.6 mb/d.

“Strong petroleum demand is a continued reflection of a strengthening U.S. economy,” said API Chief Economist Dean Foreman. “Coupled with robust production of crude oil at 11.2 mb/d and another 4.5 mb/d of natural gas liquids (NGLs) in October, the U.S. continued to meet virtually all global oil demand growth so far this year while it also kept domestic oil prices more than $9.00 per barrel below international ones and fuel costs affordable for consumers here at home.”

The Energy Information Administration (EIA) separately revised its short-term outlook to project a global oil supply surplus and lower prices for this quarter through 2019.  With EIA final data for August (11.3 mb/d for crude oil and 4.6 mb/d for NGLs), the October U.S. production levels were not records but nonetheless reflected strong investment, drilling activity, and output. As supply growth outpaced that of refinery throughput and exports, U.S. crude oil inventories rose 6.3 percent between September and October; this was the biggest monthly accumulation since March 2015. 

In October, U.S. petroleum exports (7.6 mb/d) increased for a second consecutive month since a setback in August, when China stopped purchasing U.S. crude oil.  However, with U.S. oil prices having remained below international levels, the European Union, Japan, Mexico, and Canada in total increased their purchases of U.S. crude oil and refined products by more than $1.0B between August and September.

October highlights:

  • Jet fuel demand year-to-date was the highest on record.
  • EIA projected an oil market surplus, lower prices.
  • U.S. petroleum exports rebounded to 7.6 mb/d and imports rose.
  • U.S. crude oil stocks led petroleum inventories higher in October.

For more information on the monthly reports, please visit API’s website, where the reports are now available to view and share.

About American Petroleum Institute
API is the only national trade association representing all facets of natural gas and oil industry, which supports 10.3 million U.S. jobs and nearly 8 percent of the U.S. economy. API’s more than 600 members include large integrated companies, as well as exploration and production, refining, marketing, pipeline, and marine businesses, and service and supply firms. They provide most of the nation’s energy and are backed by a growing grassroots movement of more than 45 million Americans.

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SOURCE: American Petroleum Institute