American Petrolium Institute

Moderator

American Petrolium Institute

API represents all segments of America’s oil and natural gas industry. Our more than 600 members produce, process and distribute most of the nation’s energy. The industry supports more than ten million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. API was formed in 1919 as a standards-setting organization. In our first 100 years, API has developed more than 700 standards to enhance operational and environmental safety, efficiency, and sustainability. 

Highlights

  • Total U.S. petroleum demand of 19.3 million barrels per day (mb/d) remained within 2.5% of its level from
  • February 2020 despite the ongoing effects of the COVID-19 pandemic.
  • Refining and petrochemical demand for other oils – naphtha, gas-oil, propane/propylene remained at record high levels of the month of February (5.9 mb/d) and over 30% of total U.S. petroleum demand.
  • Distillates/diesel fuel demand (4.1 mb/d) grew by 3.1% y/y on solid trucking and industrial activities.
  • Jet fuel deliveries reverted to 30.4% below their year-ago levels with continued weak air travel demand.

Leading economic indicators were mixed in February. API’s D-E-IP P (distillate/diesel economic indicator) singled continued industrial production gains.

Demand

  • U.S. petroleum demand (19.3 mb/d) remained neared its pre-COVID-19 levels.
  • Gasoline demand picked up for the first time in five months.
  • Trucking and industrial demand drove distillate demand over pre-COVID-19 levels.
  • Jet fuel deliveries fell by 30.4% y/y.
  • Residual fuel oil demand spiked seasonally by more than 50% m/m.
  • Strong other oils demand continued despite the cold snap disruptions.

Prices & Macroeconomy

  • Crude oil and gasoline prices rose; the Brent-WTI crude oil price spread widened.
  • Strong industrial gains, but consumer weakness.
  • Supply

U.S. crude oil and natural gas liquids production fell due to Gulf Coast cold snap shut-ins.

International trade

The U.S. reverted to petroleum net imports with winter emergency disruptions.

Industry operations

Refinery capacity utilization fell to record lows due to winter emergency disruptions.

Inventories

Inventories of crude oil rose, but those of products receded.

By Dr. Dean Foreman, U.S.-Africa Committee Member of the Africa Energy Chamber and API Chief Economist