November Petroleum Demand Reaches 7-Year High

Total U.S. petroleum deliveries, a measure of demand, rose in November by 1.9% from November 2013 to average 19.9 MMbbld, the highest level for the month in seven years, reports the American Petroleum Institute (API). ìIt has been several years since weíve seen this level of demand in November,î said API chief economist John Felmy. ìThe economy overall appeared to be in good shape, and production of crude, natural gas, and refined products all remained quite strong.î

Crude production jumped 14.9% from 2013 to its highest November output since 1973. The production level of 9.1 MMbbld marked the first time above 9 MMbbld since March 1986. The Bakken, Eagle Ford, and the Permian regions posted record levels of production, averaging 1.2 MMbbld, 1.6 MMbbld, and nearly 1.8 MMbbld, respectively.

Natural gas liquids production, a coproduct of natural gas production, reached its highest output on record at nearly 3.2 MMbbld, an increase of 15.3% from 2013. Production of natural gas in the Marcellus region, the largest natural gas producing region, reached a record high of nearly 15.9 Bcfd in November, up 17.9% from the previous year and was up 74% from November 2012.

Total petroleum imports in November were down by 5.2% from a year earlier to average just under 8.9 MMbbld. This was the second-lowest level since February 1996. Crude imports rose slightly by 0.7% from 2013 to average nearly 7.5 MMbbld, the second-lowest level for the month since 1996. Imports of refined products dropped 27.3% over the same period to the lowest level since May 1995 at 1.4 MMbbld.

November records were also set in refinery gross inputs and exports of refined products. Gross inputs grew 0.9% from a year prior to average 16.3 MMbbld, while exports were up 5.5% to average 4.2 MMbbld. With several refineries back up from scheduled turnarounds, the refinery capacity utilization rate averaged 91.4% in November. This was up 2.6 percentage points from October, up 0.8 percentage points from year-ago levels, and the highest November rate in 10 years. APIís refinery operable capacity was 17.805 MMbbld.

Crude oil stocks ended November at 374.9 MMbbl, up 0.3% from the previous year. It was the second-highest November inventory in 84 years, since 1930. Stocks of motor gasoline fell 3.9% from 2013 to their lowest level in six years at 208.3 MMbbl. Stocks of distillate, jet fuel, and other oils all fell from year-ago levels. Gasoline demand grew by 1.9% from November 2013 to average 9.1 MMbbld, the highest delivery for the month since 2007. Distillate deliveries were the highest in eight months, increasing by 1.2% above the prior year to 3.9 MMbbld. Demand also rose over the same period for jet fuel, 3.8%, and other oils, 7.1%, while residual fuel deliveries fell 26% to set a new record low for the month.