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Energy Tomorrow Blog

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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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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Global Economic Recovery and Oil Markets in Context

economic recovery  oil markets  oil demand 

Dean Foreman

Dean Foreman
Posted August 26, 2020

The 2020 global economic recession, triggered by the COVID-19 pandemic and government responses to it, is the deepest since World War II. Yet the World Bank, along with the Bloomberg consensus, expect global GDP growth to rebound in 2021.   

It appears $15 trillion of global stimulus is likely to have a positive impact on economic growth – and, with enabling infrastructure, markets and policies, could become a source of optimism for global oil markets.  

Historically, global GDP growth and increased oil demand have gone together – once there’s impetus for growth there must be energy to fuel that growth.

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The Oil Futures Rebound

crude markets  crude oil  demand 

Dean Foreman

Dean Foreman
Posted May 21, 2020

After crude oil futures prices plunged into negative territory for a day last month, there was a good deal of speculation that the same thing could happen this month. Some even pointed to the April futures meltdown as a “doomsday” scenario for U.S. natural gas and oil.

Well, a number of things happened on the way to oil’s “doomsday.”

At the outset, let’s note that what happened with futures in April didn’t repeat this month. Oil futures prices for June delivery of West Texas Intermediate crude, whose contracts expired Tuesday, closed at $32.50 per barrel – about 300% higher than they did for those contracts a month ago. Let’s explore why.

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Understanding the Benefits of Trade

trade  exports  crude oil demand  lng exports  access  job creation 

Mark Green

Mark Green
Posted December 26, 2013

Though there are compelling, Economics 101-type reasons the U.S. should lift its dated ban on crude oil exports and help clear the way for the export of U.S. liquefied natural gas (LNG), opponents of both continue to misunderstand the way global energy markets work – as well as the significant benefits accruing to the United States from free trade.

You’ve probably heard the rhetoric: Keep American oil and natural gas locked up here at home for U.S. consumers.

This misses the essential fact that crude oil is traded (and priced) globally, and that limiting LNG exports will only limit U.S. participation in an important, developing market – while effectively denying our country the infusion of overseas wealth in exchange for valuable American commodities.

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The Price of Fuel and Ill-Conceived Policies

crude oil  department of the interior  diesel  diesel fuel  domestic energy  energy policy  fuel  fuel prices  gas prices  gasoline  gasoline prices  gulf of mexico  moratorium  offshore drilling moratorium  oil demand  prices  ulsd  ultra-low sulfur diesel 

Jane Van Ryan

Jane Van Ryan
Posted December 30, 2010

Gasoline prices rose to their highest level in the past two years yesterday. According to AAA, the average price of gasoline climbed one penny Dec. 29 to $3.071 per gallon. This is the highest level since October 15, 2008, when the average price of gasoline reached $3.084. 

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Higher Oil Demand Signals Economic Recovery

crude oil  diesel  distribution  domestic energy  fuel  gasoline  oil demand  refineries  ulsd  diesel vehicles  fuel demand  ultra-low sulfer diesel 

Jane Van Ryan

Jane Van Ryan
Posted December 17, 2010

"Stronger fuel demand tells us a recovery is underway." Those are the words of API's Chief Economist John Felmy today, describing the good news in API's Monthly Statistical Report for November. The report shows that U.S. petroleum deliveries (a measure of demand) climbed 6.5 percent last month over November 2009. The increase was the largest year-to-year increase for any month in 2010. 

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Crude Oil Prices at Two-Year High

crude oil  energy demand  energy prices  gas prices  gasoline prices  oil demand  oil prices  prices 

Jane Van Ryan

Jane Van Ryan
Posted December 6, 2010

Crude oil prices reached a two-year high on Friday. At the end of the trading day, it closed at $89.19 per barrel, up nearly 21 cents a gallon since November 17. 

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Pump Price Update

crude oil  crude oil demand  crude oil prices  economic growth  eia  energy information administration  energy prices  gasoline  gasoline prices  global demand  iea  international energy agency  oil demand  oil prices  prices 

Jane Van Ryan

Jane Van Ryan
Posted November 3, 2010

Are you planning a trip during the upcoming Thanksgiving Day holiday? For those of us in the Washington, D.C. area, the Wednesday before Thanksgiving is the single busiest day on surrounding highways during the entire year. 

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