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Energy Tomorrow Blog

MSR: June Petroleum Demand Outpaces Supply, Imports Rise

monthly-stats-report  demand  supply  economic growth 

Dean Foreman

Dean Foreman
Posted July 21, 2021

It’s great for the U.S. economy that, with urban re-openings and the onset of the summer driving season, petroleum demand returned to over 20 million barrels per day (mb/d) in June, according to API’s primary data presented in our latest Monthly Statistical Report (MSR).

 

However, domestic oil supplies have not been able keep pace, and consequently U.S. crude oil imports and consumer prices have suddenly risen, which ultimately could contribute to the list of expenses stressing household budgets, such as higher costs for housing, vehicles and many other goods and services.

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Oil Demand Back, But Supply Remains Key Question

monthly-stats-report  supply  oil demand 

Dean Foreman

Dean Foreman
Posted June 17, 2021

The expectations and real prospects for global and U.S. economic recovery – and energy markets along with them – have accelerated and appear bright. That’s the overarching point in API’s quarterly Industry Outlook for Q2 2021 and Monthly Statistical Report (MSR), echoing what we have said since the third quarter of last year (see here, here and here). 

 

Yet, while API’s primary data for May 2021 show the recoveries in U.S. economic growth and petroleum demand have continued to go hand-in-hand, potential record global oil demand growth this year and the next, per the U.S. Energy Information Administration (EIA), could be overshadowed by the lowest industry-wide real capital expenditures on record for any quarter, by API estimates.

 

Demand up and capital investment down by record amounts is a concerning combination.

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MSR: U.S. Petroleum Demand Up, Pushing Domestic Production to Keep Pace

monthly-stats-report  energy demand  gasoline demand 

Dean Foreman

Dean Foreman
Posted May 20, 2021

API’s primary data for April 2021 evidenced momentum for the broader U.S. economic recovery, as petroleum demand and refining activity rose, supply remained solid and leading economic indicators pointed higher.

The April headline figure was that total U.S. petroleum demand of 19.6 million barrels per day (mb/d) rose by 2.5% from March and to within 3.5% of its level in April 2019, which was its highest for the month in 11 years.

Contemplate that for a second: For all of the dislocation and continuing issues with recovery from COVID-19 pandemic, total petroleum demand in April was within a sliver of where it was that record-setting April of 2019.

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MSR: U.S. Petroleum Markets, Economy Continue to Recover

monthly-stats-report  economic growth  demand 

Dean Foreman

Dean Foreman
Posted April 15, 2021

API’s primary data for March 2021 suggest that petroleum markets demonstrated a measured recovery following the winter emergency disruptions that affected oil supply, trade and inventories beginning in mid-February.

Notably, total U.S. petroleum demand of 19.1 million barrels per day (mb/d) decreased seasonally but showed resounding strength in rural gasoline demand that increased by 632,000 barrels per day over February. 

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API Reports: Economy, Petroleum Demand Have Gained Momentum

monthly-stats-report  oil demand  economic recovery 

Dean Foreman

Dean Foreman
Posted March 18, 2021

API’s latest industry outlook affirms the extent of recoveries in the U.S. and global economies, as well as rising demand for oil and natural gas.

For the past two quarters, API’s data and analysis have indicated these comebacks were underway, and this is visible in the March Monthly Statistical Report (MSR), based on February data, and API’s quarterly Industry Outlook.

The recoveries come on the tailwind provided by nearly $20 trillion of economic stimulus around the world. We could be poised for the largest two-year oil demand increase (9.2 million barrels per day, mb/d) on record since 1950 and new record highs of demand (102.4 mb/d) by the fourth quarter of 2022.

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MSR: Oil Demand Nears January 2020 Levels

monthly-stats-report  oil demand 

Dean Foreman

Dean Foreman
Posted February 18, 2021

As oil prices rallied this past week, headlines suggested that oil demand recovery is expected to pick up speed (subscription required) later this year. However, API’s latest Monthly Statistical Report, based on January data, suggests that U.S. oil markets already kicked off 2021 with a remarkable month:

Total U.S. petroleum demand returned to within 1.2% of its level from January 2020 despite the pandemic; refining and petrochemical demand for other oils – naphtha, gasoil, propane/propylene reached a record-high level (6.5 million barrels per day, mb/d) and 33.1% share of total U.S. petroleum demand; and the lowest U.S. crude oil imports for January since 1992 propelled U.S. petroleum net exports.

Consider this: For all of the economic pain and dislocation caused by the 2020 COVID-19 recession, U.S. petroleum demand returned to within a hair of its pre-COVID levels and well within the five-year range. 

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Production of Pandemic Essentials Helps Nation, Industry as 2021 Opens

monthly-stats-report  economic recovery  demand  petroleum products 

Dean Foreman

Dean Foreman
Posted January 14, 2021

API’s latest Monthly Statistical Report (MSR) underscores the importance to industry of producing essential materials during the pandemic – including sterile packaging, medical plastics and antimicrobial coatings, including polymers.

Naphtha and gasoil in refining and petrochemicals increased 10.3% year over year (y/y) in December to a record-high of 5.9 million barrels per day (mb/d), or 31.3% of total U.S. petroleum demand. Again, industry benefited from this demand and in the process helped the nation respond to the pandemic. The technical term for that is “win-win.”

December also produced an important milestone – confirmation that the U.S. was a petroleum net exporter on an annual basis for the first time in more than 60 years. It’s remarkable given the headwinds of COVID-19 and increased pressure for nations to become self-reliant. The abundance, affordability and empowering nature of U.S. petroleum has helped cut through pessimism about global trade.

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Normalcy Returning to Natural Gas and Oil Markets

monthly-stats-report  demand  economic recovery 

Dean Foreman

Dean Foreman
Posted December 17, 2020

Celebrating normalcy long has marked Americans’ emergence from a variety of national crises. It’s the same with COVID-19. As we emerge from the pandemic, we dearly want to celebrate a return to normal. Thankfully, as the economy recovers, natural gas and oil are doing their part.  

API’s new Monthly Statistical Report (MSR) and quarterly Industry Outlook show our oil industry’s fortitude and resiliency through an unprecedented period.

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Data Indicate Continuing U.S. Demand Recovery

monthly-stats-report  oil demand  economic recovery 

Dean Foreman

Dean Foreman
Posted November 19, 2020

While the International Energy Agency and OPEC recently lowered their expectations for global oil demand for this year and the next, the United States has continued to make measured progress, according to API’s latest primary data.

In October, U.S. petroleum markets reflected a U.S. economic recovery in progress. Demand increased broadly among fuels – diesel, jet fuel, other oils and gasoline among urban areas.

While these offer solid indications of domestic activity, international trade – particularly the pull for U.S. refined products – picked up in October. Moreover, the U.S. Energy Information Administration (EIA) projects record high U.S. exports of liquefied natural gas (LNG) in November.  

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MSR: Reading Between the Lines on Energy Recovery

monthly-stats-report  consumers  economic recovery 

Dean Foreman

Dean Foreman
Posted October 15, 2020

While objective interpretation of economic and energy data always is challenging, it’s especially difficult in this pandemic-impacted year to determine whether current data signal good news for consumers, the broader economy, and the natural gas and oil industry that is a key driver in the U.S. economy.

That said, API’s new Monthly Statistical Report (MSR) shows progress. Here’s what we see in the latest petroleum data from September, and it says a lot about resilience amid stressful circumstances.

API’s primary data on U.S. petroleum markets for September suggested that crude oil supply and exports rose, while demand – which since 1945 has dropped on average by 4.3% each September following the peak summer driving season – fell by much less than normal. In other words, 2020 didn’t exhibit typical seasonality, since there was less discretionary travel through the COVID-19 pandemic and relatively more driving out of necessity. Thus, it’s not surprising that petroleum consumption held up better than average in September.

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