Record gasoline production boosted by highest refinery utilization rate in 10 months:  API

Judy Penniman | 202.682.8025| pennimanj@api.org

WASHINGTON – U.S. refineries boosted utilization rates in July to 90.8 percent, the highest rate since last September. This contributed to industry production of gasoline that, at 9.325 million barrels per day, surpassed June’s all-time record; and to a record combined output of all major products of 15.6 million barrels per day, according to the latest API Monthly Statistical Report.

Meanwhile gasoline deliveries’ growth in July slowed to a modest 0.6 percent compared with a year ago. This contrasted sharply with the unusually strong June showing. “Gasoline prices had dropped steadily in June, but rose during the first half of July before again turning downward, which may explain July’s slower growth,” said Ron Planting, API’s manager of statistical information and analysis.

As for imports, while both crude and products fell short of previous July highs, gasoline imports surpassed 1.4 million barrels per day—the first time ever for July and only the third time for any month. Gasoline imports, including blending components, were up nearly 24 percent from a year earlier.

In July the U.S. refining sector moved out from a period of below-90 percent utilization with total major product from refineries reaching the record of 15.6 million barrels per day. This surpassed the former record set in December 2006 by 22,000 barrels per day. Production has increased to record levels because of ongoing expansion of existing refineries over the past decade and record gasoline supplies were delivered to U.S. consumers for the first seven months of 2007.