The American Petroleum Institute’s latest monthly statistical report shows the U.S. set a record for the production of natural gas liquids (NGL) last month producing 4.4 million barrels per day (mb/d). July also saw the U.S. tie its record for crude oil production at 10.7 mb/d.
“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,” said API Chief Economist Dean Foreman. “As a result, domestic oil prices have remained lower than international ones which is good news for consumers. Historically, the more supply that has been brought to the market the better the chances have been for putting downward pressure on prices at the pump.”
Meanwhile, U.S. petroleum demand in July sustained its highest level in 11 years, 20.6 mb/d, which reflected solid economic activity. However, nearly all demand growth between June and July stemmed from residual fuel oil and, to a much lesser extent, kerosene jet fuel. For residual fuel oil, the change ran contrary to typical seasonal demand and suggested an acceleration in marine shipping activity with escalating U.S. trade disputes.
July highlights:
- Strongest U.S. petroleum demand year-to-date since 2007.
- U.S. crude oil prices rose on strong domestic demand.
- U.S. petroleum net imports rose 450 thousand barrels per day in July.
- Highest refinery throughput for the month of July (17.7 mb/d).
- U.S. petroleum inventories increased to above the median of the 5-year range.
