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API’s July Monthly Statistical Report Shows Signs of Gradually Improving Market Conditions

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WASHINGTON, August 20, 2020 – U.S. petroleum markets continued to gradually improve in July with inventories backing down from record highs and demand posting its third consecutive monthly increase since April, according to data released today in the American Petroleum Institute’s July 2020 Monthly Statistical Report (MSR)

“Although the market remains uncertain, we saw encouraging signs in July with gradual rebalancing of oil supply and demand,” API Chief Economist Dean Forman said. “Increases in U.S. refinery throughput and capacity utilization in July – coupled with inventories receding from record highs – has reinforced expectations for the continued demand recovery.”

Led by motor gasoline, total U.S. petroleum demand rose to 18.3 million barrels per day (mb/d) in July, up 0.7 mb/d from the month prior but still down nearly 12 percent year-over-year. Meanwhile, jet fuel deliveries posted their second consecutive monthly increase, surging more than 44 percent between June and July and nearly 70 percent since May.

On the supply side, July marked the fourth consecutive month of year-on-year declines in U.S. crude oil production which averaged 10.3 mb/d for the month. The declines are consistent with the steep drop-off in oil-directed drilling activity, which has fallen to its lowest level since July 2009. By comparison, U.S. natural gas liquids production increased 3.8 percent in July to 4.9 mb/d in July – a record high for the month of July.

API represents all segments of America’s oil and natural gas industry. Our more than 600 members produce, process and distribute most of the nation’s energy. The industry supports more than ten million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. API was formed in 1919 as a standards-setting organization. In our first 100 years, API has developed more than 700 standards to enhance operational and environmental safety, efficiency and sustainability.