Petroleum Demand Last Month Highest For February Since 2008

Total petroleum deliveries in February moved up 0.1 percent from February 2016 to average 19.7 million barrels per day. These were the highest February deliveries in nine years, since 2008. Compared with January 2017, total domestic petroleum deliveries, a measure of U.S. petroleum demand, also increased 2.2 percent. For year to date, total domestic petroleum deliveries increased 0.7 percent compared to the same period last year.

The overall economy in the U.S. showed gains again for the second time in the year, adding 235,000 jobs according to the U.S. Bureau of Labor Statistics (BLS). The U.S. unemployment rate changed little at 4.7 percent in February.

In February, gasoline deliveries, a measure of consumer gasoline demand were up from the prior month, but down from the prior year, and the prior year to date. Total motor gasoline deliveries, decreased 3.8 percent from February 2016, to average 8.9 million barrels per day– the second highest February demand in nine years.

“Crude oil production broke the 9 million barrels per day threshold for the first time since March 2016. This increase in production combined with more widespread jobs gains is good news for the economy, which appears to be moving in the right direction,” said Chief Economist, Erica Bowman.

Crude oil production increased 0.7 percent from January, but was down by 1.3 percent from February 2016 to average just above 9.0 million barrels per day in February. This was the highest crude oil production for any month since March 2016. Natural gas liquids (NGL) production, a co-product of natural gas production, was down from the prior month, but was up from the prior year, and the prior year to date. NGL production fell 2.7 percent from January but was up by 2.9 percent from February 2016 to average 3.4 million barrels per day in February.

U.S. total petroleum imports in February averaged nearly 10.4 million barrels per day, down 2.7 percent from the prior month, but up 3.6 percent from the prior year. These were the highest February imports in five years, since 2012. For year to date, total petroleum imports were also up by 6.7 percent compared with year to date 2016.

Crude oil imports increased 2.8 percent from February 2016 to 8.1 million barrels per day in February 2017. Compared with January 2017, crude oil imports were 2.0 percent lower. Refined product imports in February increased by 6.6 percent from the prior year to just below 2.3 million barrels per day, but were down 5.2 percent from the prior month.

About API
API is the only national trade association representing all facets of the oil and natural gas industry, which supports 9.8 million U.S. jobs and 8 percent of the U.S. economy. API’s more than 625 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 30 million Americans.