The recovery of U.S. petroleum markets broadly continued in June with U.S. petroleum demand increasing nearly 9% to 17.6 million barrels per day (mb/d), according to data released in the American Petroleum Institute’s June 2020 Monthly Statistical Report (MSR).
“Although we have a long way to go for U.S. petroleum markets to recover to pre-pandemic levels, the comeback broadly continued in June despite ongoing challenges with COVID-19,” API Chief Economist Dean Foreman said. “While we are not out of the woods yet, we do appear to be headed in the right direction with the U.S. natural gas and oil industry well-positioned to play an important role in the recovery of the U.S. and global economies.”
Motor gasoline accounted for more than 85 percent of the demand rebound as more motorists hit the road with the gradual reopening of state economies. Meanwhile, jet fuel deliveries rose for the first time in 2020, surging more than 41 percent between May and June, but still down over 61 percent year-over-year.
On the supply side, U.S. crude oil production posted its seventh consecutive monthly decline in June, falling 0.4 mb/d to 11.0 mb/d as producers continue to adjust output to align with lower energy demand as result of the pandemic. Production of natural gas liquids also declined in June, falling just over one percent month-over-month. The production declines coincided with continued builds in U.S. crude oil inventories which reached a record 538.8 million barrels in May.
