U.S. Petroleum Demand Rebound Continues
The broad recovery of U.S. petroleum markets continued in June with U.S. petroleum demand increasing nearly 9% to 17.6 MMbbld, according to data released July 16 in the American Petroleum Institute’s June 2020 Monthly Statistical Report (MSR).
“Although we have a long way to go for U.S. petroleum markets to recover to pre-pandemic levels, the comeback broadly continued in June despite ongoing challenges with COVID-19,” API chief economist Dean Foreman said. “While we are not out of the woods yet, we do appear to be headed in the right direction with the U.S. natural gas and oil industry well-positioned to play an important role in the recovery of the U.S. and global economies.”
Motor gasoline accounted for more than 85% of the demand rebound as more motorists hit the road with the gradual reopening of state economies. While jet fuel deliveries rose for the first time in 2020, surging more than 41% May and June, they were still down more than 61% year-over-year.
On the supply side, U.S. crude oil production posted its seventh consecutive monthly decline in June, falling 400,000 bbld to 11.0 MMbbld as producers continue to adjust output to align with lower energy demand as result of the pandemic. Production of natural gas liquids also declined in June, falling slightly more than 1% month-over-month. The production declines coincided with continued builds in U.S. crude oil inventories, which reached a record 538.8 MMbbl in May.
“Although we have a long way to go for U.S. petroleum markets to recover to pre-pandemic levels, the comeback broadly continued in June despite ongoing challenges with COVID-19,” API chief economist Dean Foreman said. “While we are not out of the woods yet, we do appear to be headed in the right direction with the U.S. natural gas and oil industry well-positioned to play an important role in the recovery of the U.S. and global economies.”
Motor gasoline accounted for more than 85% of the demand rebound as more motorists hit the road with the gradual reopening of state economies. While jet fuel deliveries rose for the first time in 2020, surging more than 41% May and June, they were still down more than 61% year-over-year.
On the supply side, U.S. crude oil production posted its seventh consecutive monthly decline in June, falling 400,000 bbld to 11.0 MMbbld as producers continue to adjust output to align with lower energy demand as result of the pandemic. Production of natural gas liquids also declined in June, falling slightly more than 1% month-over-month. The production declines coincided with continued builds in U.S. crude oil inventories, which reached a record 538.8 MMbbl in May.
SOURCE: The Weekly Propane Newsletter, July 23, 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.
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