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 United States also set October records for gasoline demand at 9.5 mb/d.
Other October data showed:
- Jet fuel demand year to date was the highest on record.
- The U.S. Energy Information Administration (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.
“Strong petroleum demand is a continued reflection of a strengthening U.S. economy,” says Dean Foreman, chief economist at the American Petroleum Institute. “Coupled with robust production of crude oil at 11.2 mb/d and another 4.5 mb/d of natural gas liquids 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 per barrel below international ones and fuel costs affordable for consumers here at home.”
EIA separately revised its short-term outlook to project a global oil supply surplus and lower prices through 2019. With EIA final data for August (11.3 mb/d for crude oil and 4.6 mb/d for natural gas liquids), 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 billion between August and September.
This article was originally published on the American Petroleum Institute website.