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More than two years ago, the price of oil soared to over $100 dollars a barrel. Today, it's not nearly that high, but at a price of $88.21 in the U.S., oil is slowly creeping up, thanks in part to soaring fuel consumption that's linked to a rebounding economy.

According to the American Petroleum Institute (API), total deliveries of petroleum products, an accurate measure of overall demand, climbed 6.5 percent to 20 million barrels a day in November and consumption during the first 11 months of this year climbed 2.4 percent over 2009's reported numbers, reaching 19.2 million barrels a day.

On the gasoline front, deliveries increased 3.2 percent to 9.19 million barrels a day and consumption rose to an average of 9.06 million barrels a day, up 0.7 percent from 2009. Demand for ultra-low sulfur diesel skyrocketed 13 percent over last year's number, averaging 3.33 million barrels a day.

John Felmy, chief economist at the Washington-based API, issued this statement on the rising demand for petroleum products:
Fuel demand continues to strengthen, a positive sign for the economy. Gasoline deliveries are up three months in a row and distillate deliveries are up 10 months in a row.
Despite the fact that our fuel usage has risen compared to 2009 numbers, the U.S. still exports less oil than it did back in 2006 and experts seem to agree that – over the long term – our demand for gasoline will follow a downward sloping trend. How we square that with increased fuel demand being "a positive sign for the economy" will be tough to figure out.
[Source: American Petroleum Institute | Image: jkirkhart35 – C.C. License 2.0]

PRESS RELEASE

Increase in petroleum deliveries signals stronger economy: API


Increase in petroleum deliveries signals stronger economy: API WASHINGTON – Total U.S. petroleum deliveries (a measure of demand) increased 6.5 percent in November compared with November 2009, evidence the nation's consumer and industrial sectors are recovering, according to API's Monthly Statistical Report. The step-up in fuel demand represented the largest year-to-year increase for any month in 2010.

Gasoline deliveries rose 3.2 percent this November from a year ago while distillate fuel deliveries jumped 13.5 percent. Ultra-low sulfur distillate deliveries – the diesel used in trucks – were up 13.2 percent. Jet fuel deliveries experienced a robust 16.7 percent increase.

"Fuel demand continues to strengthen, a positive sign for our economy. Gasoline deliveries are up three months in a row and distillate deliveries are up 10 months in a row over the same months in 2009," said API chief economist John Felmy. "Stronger fuel demand tells us a recovery is underway."

Domestic crude oil production stood at 5.44 million barrels per day in November up slightly from last year, down 1.3 percent from October, but the highest total for any November since 2003. Rig counts rose to their higher level for the year at 1,683, according to Baker Hughes, Inc.

November's 10.9 million barrels a day of crude oil and product imports were lower than November a year ago by 1.1 percent, driven by double digit declines in product imports. Crude oil imports were five percent higher than a year ago, averaging 9.1 million barrels a day. While the highest total for any November since 1987, domestic crude oil inventories were lower than last month. November gasoline stocks were down three percent and distillate stocks were 3.8 percent lower compared with October.

Refinery utilization reached 83.2 percent of capacity in November, higher than this past October and November 2009. The rate was 15 percentage points above the average utilization for all U.S. manufacturing (in October 2010), according to Federal Reserve Board data.

API represents more than 450 oil and natural gas companies, leaders of a technologydriven 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.


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  • 24 Comments
      • 4 Years Ago
      You might remember that the US economy is based upon markets.
      Transportation of goods to be sold at market places has been traditionally by diesel powered transport vehicles.
      For many years diesel was cheaper than gasoline in the US.
      The demand for diesel in Europe soon drove up the price and made it profitable for commodity brokers to sell and export diesel to Europe.
      The demand left a shortage of refined gasoline and so the price of gasoline and diesel sky-rocketed.

      In the market place there is only a finite amount of currency to go around.
      The consumer bore the brunt of the high energy prices both at the pump and with the rise in price of everything else that requires transportation.
      The effects of this are still felt today in the form of the global economic downturn.

      With so many unemployed and the rest spending more and receiving less both in wages and inflation,the prospects for a recovery are still on shaky footing.
      The commodity brokers are waiting for the chance again to make a killing and the slightest positive news sends them scrambling to start all over again.
      This drives down the economy and so they must ease off or lose money.

      Here is a good read which explains more fully:
      http://theseventhfold.com/2010/04/16/the-curious-case-of-the-crude-crack-spread/

      Have a wonderful,prosperous and happy new year.
      • 4 Years Ago
      I find the statements:

      "According to the American Petroleum Institute (API), total deliveries of petroleum products, an accurate measure of overall demand, climbed 6.5 percent to 20 million barrels a day in November and consumption during the first 11 months of this year climbed 2.4 percent over 2009's reported numbers, reaching 19.2 million barrels a day.

      Domestic crude oil production stood at 5.44 million barrels per day in November up slightly from last year, down 1.3 percent from October, but the highest total for any November since 2003....

      November's 10.9 million barrels a day of crude oil and product imports were lower than November a year ago by 1.1 percent, driven by double digit declines in product imports. Crude oil imports were five percent higher than a year ago, averaging 9.1 million barrels a day."

      confusing. So how does a consumption of 20M barrels per day square with domestic production of 5.44M and importing 10.9M? Goes on to say:

      "domestic crude oil inventories were lower than last month. November gasoline stocks were down three percent and distillate stocks were 3.8 percent lower compared with October."

      But I find it hard to believe that 3.8 % of reserve amounts to 20-5.44-10.9= 3.66M x 30 days = 109.8M barrels. Is this the right explanation?
        • 4 Months Ago
        One set of figures is for crude going to refineries, the other is for what is being delivered to customers. The difference is what is going into or out of storage tanks.
        • 4 Months Ago
        The numbers are always murky since what is being counted tends to change.

        Natural Gas Liquids? Ethanol? Bio-diesel?
      • 4 Months Ago
      Im sure a barrel of sewage is less costly and can serve the same exact purposes as a barrel of imported oil from saudi-arabia fiscal paradise.
      • 4 Months Ago
      Oil the black demon that gives very little in return!

      I remember when the price of a barrel of oil was a few dollars. Godaffi started the price rise to be payed in gold to what it should be fairly traded at. Others followed suite. Now we see inflation of prices beyond that. It really makes you think who causes these price hikes?

      The group that tries they used to manage the price down around 28 per barrel! They say they are not leveraging the price. Someone wakes up each morning going to work who sets the price, but we never hear who.

      Everyone just denies responsibility. We see the difficult results at the pump and wonder why, scratch our heads and keep going, because we have to! arch



      • 4 Years Ago
      "How we square that with increased fuel demand being "a positive sign for the economy" will be tough to figure out."

      The most positive measure of economic recovery is employment. Are more people working? The increase consumption would suggest that more people are driving to work.
        • 4 Months Ago
        Actually, it is still useful as an indicator considering how ultra-dependent we are on petroleum.

        If more oil is being used:

        1. People are buying more stuff ( the majority of it being shipped from another country )
        2. More people are driving to work
        3. Homes are being built
        4. Businesses are being built

        etc..

        The price of oil is paralleling our global recovery. If you watch the stats long enough, this is painfully obvious :/
      • 4 Years Ago
      As someone mentioned over on GCC, I give very little credibility to the API analysis of the situation. It is very self serving: "and experts seem to agree that – over the long term – our demand for gasoline will follow a downward sloping trend"

      These are the same guys who have been denying we were approaching peak oil. Now they are going to start trying to explain it away as "peak demand". Nice try at saving face guys.

      I suppose they are going to claim that the US or the world economy will never be bigger than it was in 2006 again as well.
      harlanx6
      • 4 Months Ago
      When everything you read is spun (read lies) to support whichever author's preconceived points of view, you just have to run it all by your personal BS test, and take it all with a grain of salt. I think it is safe to say the price of crude oil against gold will definitely affect the demand. Against the dollar who knows? The American government is determined to turn the dollar into monopoly money!
      Noz
      • 4 Months Ago
      It is sad and pathetic that we measure the progress of our economy upon how much crap we consume.

      What a truly pathetic yard stick.
      • 4 Years Ago
      Oil is current $91.51 on the spot market.
      • 4 Years Ago
      How much is a barrel of green algae mud ? Im interrested to buy one but distilled to pure ethanol put on sale near where i live. If not refined, then at least sell it with associated small equipment to transform this green greasy, stinking mud to ethanol, methanol, lpg, n-gas, propane, butanol bio-diesel or whatever that burn nicely in an ice. If you have just this small machine, then i will buy for myself a barrel of oil, then transform it myself with the machine as refiners do since 110 years or more.

      Breaking: a barrel of concentrated, well packaged sewage can be transformed by someone else with this same small machine, and the fuel can be put on sale near where you or someone else live. Crude petroleum, green algae mud and sewage have approx the same content, only the technics to transform it differ.
      • 4 Years Ago
      Pretty hilarious comparing this spin with the story a couple days ago about "Americans Using 8% LESS Gasoline than 2006."

      http://green.autoblog.com/2010/12/22/americans-using-less-gasoline-than-2006-peak/

      These numbers serve their authors in whatever way they choose. But one thing is clear. With the advent of REAL EVs for sale, and the improved MPG standards, there IS a downward trend in gasoline use beginning.

      And add to this the addition of domestic biofuels and ideas like car sharing. The USA is leading the Energy Independence revolution. Finally.
        • 4 Months Ago
        All this decline is people not driving to work or worse. EV's will not the difference make that the recession has. The industry sells roughly 1 million trucks and cars a month. http://online.wsj.com/mdc/public/page/2_3022-autosales.html
        If Nissan and GM would sell 100,000 a month of EV (I know they can't - the cars are too expensive for most) we would get a 10% reduction in petroleum use.... in 10 years when all the old cars on the roads have been replaced.
        • 4 Months Ago
        EVs do not yet make a detectable change to oil consumption. There are pretty much none out there right now and they'll be a tiny about in the next year. It really is the economy crash
      • 4 Years Ago
      By the way, I love how they claim to be such good guys too. They are lumping petroleum in with Natural Gas which truly is a domestic industry and pretend that the oil companies are doing such a wonderful service for us all:
      "API represents more than 450 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"

      Don't try claiming the Natural Gas industry jobs as your own guys, and if petroleum was replaced by EVs or FCVs or cars running on unicorn farts, then that industry would supply the same jobs...and they would be truly American jobs this time.
        • 4 Months Ago
        Here is another tidbit from about our "friends" at Exxon who are doing so much for us as they try to outsource $1.5Billion in IT to India. It turns out the $45BILLION in pure profit Exxon made and the ZERO $$ in US income taxes Exxon paid last year were not quite enough profit for them.

        So they are now going to outsource another $1.5B of US jobs to India. By the way, the US Chamber of Commerce lobbied and paid for MULTIPLE Senators to make sure they could keep their tax writeoffs when they shut down their US IT operations and moved them to India.

        Well played Exxon. You have F'd us once again and we're still smiling about it like a bunch of drugged up idiots.

        http://economictimes.indiatimes.com/tech/ites/ExxonMobil-in-talks-with-local-vendors-for-1billion-IT-contracts/articleshow/4942965.cms
        • 4 Months Ago
        Don't blame me, I have driven 17,250 miles with out with out gas in the last two years. I am not creating demand. Opps, but I have burned gas in my work van.
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