Wednesday, August 26, 2020
According to data released Aug. 20 in the American Petroleum Institute’s July 2020 Monthly Statistical Report (MSR), U.S. petroleum markets continued to gradually improve in July with inventories backing down from record highs and demand posting its third consecutive monthly increase since April,
“Although the market remains uncertain, we saw encouraging signs in July with gradual rebalancing of oil supply and demand,” API chief economist Dean Forman said. “Increases in U.S. refinery throughput and capacity utilization in July—coupled with inventories receding from record highs—has reinforced expectations for the continued demand recovery.”
Led by motor gasoline, total U.S. petroleum demand rose to 18.3 MMbbld in July, a 700,000 bbld addition from the month prior, but still nearly 12% less year-over-year. Meanwhile, jet fuel deliveries posted a second consecutive monthly increase, surging more than 44% between June and July and nearly 70% since May.
On the supply side, July marked the fourth consecutive month of year-on-year declines in U.S. crude oil production which averaged 10.3 MMbbld for the month. The declines are described as consistent with the steep drop-off in oil-directed drilling activity, which has dipped to its lowest level since July 2009. By comparison, U.S. natural gas liquids production increased 3.8% in July to 4.9 MMbbld in July, a record high for the month of July.
SOURCE: The Weekly Propane Newsletter, August 27, 2020. Weekly Propane Newsletter subscribers receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to inboxes every week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary, and much more not found elsewhere.
“Although the market remains uncertain, we saw encouraging signs in July with gradual rebalancing of oil supply and demand,” API chief economist Dean Forman said. “Increases in U.S. refinery throughput and capacity utilization in July—coupled with inventories receding from record highs—has reinforced expectations for the continued demand recovery.”
Led by motor gasoline, total U.S. petroleum demand rose to 18.3 MMbbld in July, a 700,000 bbld addition from the month prior, but still nearly 12% less year-over-year. Meanwhile, jet fuel deliveries posted a second consecutive monthly increase, surging more than 44% between June and July and nearly 70% since May.
On the supply side, July marked the fourth consecutive month of year-on-year declines in U.S. crude oil production which averaged 10.3 MMbbld for the month. The declines are described as consistent with the steep drop-off in oil-directed drilling activity, which has dipped to its lowest level since July 2009. By comparison, U.S. natural gas liquids production increased 3.8% in July to 4.9 MMbbld in July, a record high for the month of July.
SOURCE: The Weekly Propane Newsletter, August 27, 2020. Weekly Propane Newsletter subscribers receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to inboxes every week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary, and much more not found elsewhere.
