Karen Matusic, (202) 682-8118
WASHINGTON, August 17, 2006 - U.S. gasoline demand rose in July compared to year-earlier levels despite higher pump prices, data compiled by the American Petroleum Institute show.
In its Monthly Statistical Report covering July 2006, API noted that gasoline deliveries, a proxy for demand, climbed 1.7 percent. U.S. distillate fuel use also climbed, up 9.2 percent compared to July 2005, but lower deliveries of jet fuel, residual fuel oil and other products offset the gains to push total U.S. petroleum deliveries down 0.2 percent versus July 2005 levels.
The gasoline demand increase was a bit puzzling, given the potential dampening effect of higher retail prices averaging nearly $3 per gallon for the month -- up 30 percent from one year earlier and 56 percent from July 2004, says Ron Planting, API’s manager of statistical information and analysis. Deliveries’ year-to-date average growth of 0.9 percent, though still relatively weak, is now stronger than the nearly-flat 0.2 percent rise seen in 2005.
“Stronger income growth may have provided a boost to demand, but we still believe consumers are adjusting their travel patterns as a result of higher prices,” Planting said.
On the supply side, U.S. crude oil production slid 1.3 percent July compared with a year earlier, the smallest year-on-year decline in 14 months. Domestic refinery operations continued at a strong pace as the national capacity utilization rate averaged 92.6 percent in July, down from 94 percent in July 2005.
Production of ultra-low sulfur distillate (ULSD) made up nearly 2.1 million barrels per day (66.3 percent) of low-sulfur distillate production in July as refiners continue to ramp up production to meet this year’s new standards. Meanwhile, high-sulfur distillate production was 903,000 barrels per day—down 46,000 barrels per day from June and dramatically lower than last year, down 16.1 percent.
U.S. petroleum imports rose to 14 million barrels per day, a record for the month of July and the fifth highest level ever. Commercial petroleum inventories remained healthy. Crude oil stocks fell 1.4 percent from June but stood at 335.2 million barrels on July 31, up 4.9 percent from year-ago levels and 10.5 percent from the five-year-average. Gasoline inventories posted an unusual increase, rising by 90,000 barrels from June, to stand at 209.9 million barrels, up 1.2 percent from year-ago levels. Gasoline stockpiles usually decline in July, averaging a 2.3 percent drop over the past five years.
News media contact: Karen Matusic, (202) 682-8118