Total petroleum deliveries in November rose to 19.9 million barrels per day. This was the strongest November monthly demand since 2007. Cumulatively through the first 11 months of the 2017, total domestic petroleum deliveries rose by 0.9 percent, which exceeded demand growth in 2016 despite higher prices.
“With sustained strength in the U.S. and global economies, petroleum demand remained strong despite higher prices than last year,” said API Chief Economist Dean Foreman. “Resilient supply continued to outpace demand in November, yet inventories experienced a record November drawdown. With U.S. crude prices trading at a discount to international ones—and the Brent-WTI crude price differential above $6.00 per barrel at the end of November—there was a greater pull for U.S. petroleum exports, which increased by 22.0 percent or about 1.2 million barrels per day compared with November 2016.”
Motor gasoline deliveries were the strongest ever for a November. Consumer gasoline demand, as measured by total motor gasoline deliveries, rose by 0.6 percent year-over-year to 9.3 million barrels per day. Following an exceptionally strong October, gasoline deliveries fell by 0.6 percent for the month. However, the year-to-date trend remains positive, and deliveries climbed by 0.2 percent year to date through the first 11 months of the year compared with the same period in 2016 and are on track to set a new annual record above 9.3 million barrels per day for 2017.
U.S. crude oil production in November remained strong and above 9.0 million barrels per day for the 10th consecutive month. Domestic crude oil production increased 9.0 percent from the prior year and reached the highest November output in 47 years, since 1970, to average nearly 9.7 million barrels per day. Compared with the prior month and the prior year to date, crude oil production increased 2.8 percent and 4.0 percent, respectively. The month-ago increase likely reflected the impact of hurricane recovery and market stabilization. Domestic crude oil production in the lower 48 states increased by 2.9 percent from October and was 9.5 percent higher than November 2016 at more than 9.1 million barrels per day.
Natural gas liquids (NGL) production, a co-product of natural gas production, increased from the prior month and prior year. NGL production in November was up by 0.7 percent from October and by 3.4 percent from November 2016 to average 3.7 million barrels per day– the highest November volume and the fourth highest volume ever.
API is the only national trade association representing all facets of the oil and natural gas industry.
Source- FuelMarketernews.com
