Crude Oil Demand, Consumption, and Inventories Fell Last Week

Recent EIA weekly data shows that total products fuel demand in the U.S. decreased, averaging 19.9 million barrels a day last week (a Bloomberg article also mentions that Japan imported 0.7% less crude oil in June than one year ago). U.S. demand has now declined for three straight weeks, with U.S. fuel consumption averaging 20.3 million barrels a day over the past four weeks, down 2.1% from a year earlier. U.S. crude oil refinery inputs averaged 15.1 million barrels per day last week, down 355,000 barrels per day. Refineries operated at 87.1% capacity last week, down 2.4%, marking the lowest utilization rate in over two months. Gasoline production increased, averaging 9.2 million barrels per day, while distillate fuel production decreased, averaging 4.6 million barrels per day.

Crude oil inventories were down 1.6 million barrels to 295.3 million barrels. Stockpiles were forecast to only decline by 675,000 barrels. While Hurricane Dolly turned out to not be as bad as initially worried for on- and off-shore Gulf refineries, some energy companies nonetheless evacuated select oil rigs as a precaution, cutting Gulf production by 4.7%. Total motor gasoline inventories increased by 2.9 million barrels last week. Distillate fuel inventory, including diesel and heating oil, increased by 2.4 million barrels. Commercial petroleum inventories increased by 1.9 million barrels last week.

Crude oil imports to the U.S. averaged 9.8 million barrels per day last week, down 985,000 barrels per day. Total motor gasoline imports averaged 1.1 million barrels per day last week, while distillate fuel imports averaged 102,000 barrels per day. Over the last month, motor gasoline demand has averaged 9.3 million barrels per day, down by 2.4% from last year. For the same period, distillate fuel demand has averaged about 4.2 million barrels per day, up by 3.6%, while jet fuel demand fell 2.5%.