WASHINGTON (MNI) – The following text is the summary of the
American Petroleum Institute’s monthly report on domestic petroleum
deliveries, gasoline deliveries and crude oil production for December
released Friday:

In December 2010, the domestic deliveries of motor gasoline and
distillate fuels moved in opposite directions when compared with the
gasoline and distillate fuel deliveries in December 2009. Positive
growth in industrial activity drove the demand for distillate fuels as
measured by its deliveries in December. However the consumer demand for
gasoline remained weak during the winter holiday season, due to the
higher cost of retail gasoline and the strong winter snow storms, and
could have attributed to the decline in road travel.

According to the U.S. Census Bureau, retail trade and services
sales in December 2010, at US$ 380.9 billion, increased by 7.9 percent
from December 2009 levels. However a significant percentage of the
retail sales came from e-commerce channels according to the latest
retail store survey from Core Metrics. Online retail sales were up by 12
percent from December 2009 driving up more diesel-truck traffic
fulfilling the online orders and fewer consumers on the road. Deliveries
in the fourth quarter of 2010 indicate that demand for all key refined
products, with the exception of residual fuels, was up compared with the
same period in 2009.

Total domestic deliveries in December continued to trend up on a
year-to-year basis, as the macroeconomic indicators continued to remain
positive and the U.S. economy gathered momentum into 2011. At 19.5
million barrels per day, total deliveries were up by 1.2 percent from
last December but down by 2.5 percent from November 2010. On a
year-to-date basis, total deliveries were up by 2.3 percent from 2009.

Gasoline deliveries, at 8.9 million barrels per day, were slightly
down from last year by 0.8 percent while distillate fuel deliveries, at
4.1 million barrels per day, were up by 6.9 percent, continuing the
string of year-to-year increases since September 2010. Ultra-low sulfur
distillate (ULSD) deliveries stood at 82.6 percent of total distillate
deliveries and were up by 16.1 percent from the prior year. This was
also the highest ULSD deliveries level for any December. Jet fuel
deliveries were up by 8.6 percent while residual fuels were down by 13.4
percent from the prior year.

Domestic crude production stood at 5.52 million barrels per day in
December, up by 1.3 percent from the prior year. Natural gas liquids
production at 2.03 million barrels per day was down by 3.8 percent from
last December. Crude production in the Lower 48 states was up by 1.4
percent compared with the prior year while Alaskan production dipped by
0.5 percent in December 2010. North Dakota continued to show increases
in crude production on a month-to-month and year-to-year basis. For the
fourth quarter of 2010, domestic crude production stood at 5.5 million
barrels per day, up by 0.6 percent from the fourth quarter of 2009.

December’s crude oil and product imports, at 10.6 million barrels
per day, were lower than the prior month but slightly up from the prior
year, driven by increases in crude imports. Crude imports at 8.8 million
barrels per day were up by 8.1 percent while total product imports, at
1.8 million barrels per day, were down by 24.3 percent.

Refinery activity moved up in December 2010, as the total inputs to
crude distillation units, at 14.6 million barrels per day, jumped higher
by 1.5 percent and the refinery utilization, at 85.7 percent, rose by
4.4 percent from December 2009. Production of motor gasoline and
residual fuels was down compared with the prior year by 1.0 percent and
20.8 percent respectively. However, gasoline production in December 2010
was at the second highest December level, following production levels in
December 2009. Yearly average production of motor gasoline was at an
all-time record high.

Production of distillate fuels and jet fuels rose by 19.1 percent
and 3.8 percent, from the prior year. Distillate production at 4.6
million barrels per day, reached the highest production level for any
December. Yearly average production of distillate fuels in 2010 was at
the second highest level, following the average production in 2008.
Refinery inputs in the fourth quarter of 2010 were higher than that in
2009 by 2.0 percent while the refinery utilization rates, at 84.2
percent, were higher by 2.9 percent.

U.S. crude stocks, in December, showed steep yet seasonal declines,
down by 6.5 percent from November but up by 2.2 percent from December
2009. At 332.2 million barrels, this was the highest crude stock level
since December 1994. All products showed stock declines in December
compared with November of 2010. Total motor gasoline stocks were 1.3
percent lower while distillate stocks were 0.4 percent lower compared
with November 2010.

** Market News International Washington Bureau: 202-371-2121 **

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