API: July US petroleum demand up 3.8% month-on-month

API: July US petroleum demand up 3.8% month-on-month

US petroleum demand, as measured by total domestic petroleum deliveries, was 18.3 million b/d in July. This was the third consecutive monthly increase and a rise of 3.8% (700,000 b/d) from June, but 11.9% (2.5 million b/d) below July 2019 levels.

US petroleum demand, as measured by total domestic petroleum deliveries, was 18.3 million b/d in July. This was the third consecutive monthly increase and a rise of 3.8% (700,000 b/d) from June, but 11.9% (2.5 million b/d) below July 2019 levels.

The rebound since April has amounted to 3.6 million b/d so far—the largest 3-month increase since December 1976. Motor gasoline continued to account for nearly 80% of the gains as light-duty transportation has picked up with recovery through the COVID-19 pandemic.

Consumer gasoline demand, measured by motor gasoline deliveries, was 8.7 million b/d in July. This was a monthly increase of 4.5% (400,000 b/d) but remained 8.5% (800,000 b/d) below year-ago levels.

Over the past 20 years, July motor gasoline demand has averaged just 0.2% m/m greater than that in June, so the majority of last month’s increase appeared to reflect the underlying recovery from the COVID-19 pandemic, as opposed to summer driving seasonality.

Low gasoline prices have helped to support demand. The US average conventional gasoline price was $2.27/gal in July, down by 19.5% ($0.55/gal) from July 2019, according to AAA.

In July, distillate deliveries of 3.6 million b/d rose by 0.2% from June but remained down by 9.1% y/y (400,000 b/d). This was consistent with DAT iQ industry trendlines showing monthly increases in load turnover across industry segments and fleets.

Jet fuel deliveries rebounded to 1.0 million b/d in July, marking their second consecutive monthly increase in 2020 for a total increase of 68.1% between May and July. Increase jet fuel deliveries have been consistent with reported flight activity and passenger demand having risen per Flightradar24 and TSA. However, the deliveries still were down 46% y/y as air travel amid the peak summer season has remained historically weak due to the COVID-19 pandemic.

Deliveries of residual fuel oil, which is used in electric power production, space heating, industrial applications, and as a marine bunker fuel, rose to 400,000 b/d in July. This marked increase of 69.6% m/m and 14.4% y/y, respectively, consistent with a resumption of industrial and marine activity previously weakened by COVID-19 and IMO 2020 implementation.

Deliveries of liquid feedstocks, such as naphtha and gasoil (other oils) used in refining and petrochemical manufacturing, were 4.7 million b/d in July. This was a decrease of 3.8% m/m and 10.6% y/y but remained 25.6% of total US petroleum demand.

Featured Posts
Recent Posts
Archive
Search By Tags
Follow Us
  • Facebook Basic Square
  • Twitter Basic Square
  • Google+ Basic Square

© 2017 RtChex

  • Facebook Social Icon
  • Google+ Social Icon