According to the American Petroleum Institute’s (API) latest monthly statistical report, the US achieved a record for the production of natural gas liquids (NGL) during July, as the US produced 4.4 million barrels per day (mb/d). July also saw the US tie its record for crude oil production at 10.7 mb/d.
In the meantime, US petroleum demand in July kept its highest level in 11 years, 20.6 mb/d, which reflected solid economic activity. However, almost all demand growth between June and July came from residual fuel oil and, to a much lesser extent, kerosene jet fuel. For residual fuel oil, the change is contrary to typical seasonal demand and suggests an acceleration in marine shipping activity with escalating US trade disputes.
API Chief Economist Dean Foreman mentioned:
With total U.S. liquid fuels production, up by more than 2.0 MBD year-over-year, the United States has been the world’s only substantive source of oil production growth so far in 2018 and more than compensated for production losses in some OPEC nations.
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Thus, domestic oil prices have remained lower than international ones. This positive as with more supply, the better are the chances for decreasing prices.
Taking the report into consideration, July’s highlights can be summarized as following:
- Strongest US petroleum demand year-to-date since 2007;
- US crude oil prices rose on strong domestic demand;
- US petroleum net imports rose 450 thousand barrels per day in July;
- Highest refinery throughput for the month of July (17.7 mb/d);
- US petroleum inventories increased to above the median of the 5-year range.
You can see the full report by clicking the PDF herebelow
