WASHINGTON, October 15, 2010 – U.S. petroleum demand strengthened for all key refined products in September, indicating a shift from economic stagnation to economic recovery, according to the American Petroleum Institute’s Monthly Statistical Report for September.
September distillate deliveries surged 6.9 percent compared with September 2009, driven by a robust demand recovery in ultra-low-sulfur distillates, the type used for on-highway fuel, indicating a bounce in industrial activity toward the end of the third quarter. September ULSD deliveries averaged 3.1 million barrels per day, up 9.4 percent from the same month a year ago. For the first nine months of 2010, ULSD deliveries averaged 2.95 million barrels per day, a 2.4 percent increase over the first nine months of 2009.
“The September data suggests a move toward economic recovery,” observed API Chief Economist John Felmy. “Stronger distillate demand indicates an uptick in industrial activity, while stronger jet fuel and gasoline demand point to increased business and consumer confidence.” Jet fuel demand in September jumped 11.6 percent from 2009 to average 1.6 million barrels per day, while September total gasoline demand ticked up 0.1 percent over the same month a year ago to average 8.9 million barrels per day.
U.S. crude oil stocks stood at 363.1 million barrels at the end of September, 8.4 percent higher than 2009. But distillate fuel oil stocks were lower than a year ago. Moving into the winter heating season, total distillate inventories stood at 167.9 million barrels at end-September, down 2.8 percent from last year, with high-sulfur distillate, which includes heating oil, down 3.1 percent from a year ago, at 50.2 million barrels. Compared with the five-year average, end-September distillate inventories were up 18 percent, while high-sulfur distillate inventories were down by 1.7 percent.
While September refinery inputs slipped 1.2 percent from the September 2009, production for all petroleum products, except residual fuel oils, continued to grow. Gasoline output was up by 1.7 percent, and at 9 million barrels per day, was the highest level on record for any September. Distillate fuel production rose 2.7 percent from September 2009.
API represents more than 400 oil and natural gas companies, leaders of a technology-driven industry that supplies most of America’s energy, supports more than 9.2 million U.S. jobs and 7.5 percent of the U.S. economy, and, since 2000, has invested nearly $2 trillion in U.S. capital projects to advance all forms of energy, including alternatives.
Updated: October 15, 2010