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 June
released Friday:

PETROLEUM DELIVERIES

For the first half of this year, total domestic petroleum
deliveries fell 2.6 percent compared with the first half of last year.
Total domestic petroleum deliveries, a measure of U.S. petroleum demand,
were down from the prior year and were also down compared to second
quarter last year, in June. This continued weak demand change is
reflective of improving but relatively weak economic conditions. The
most recent BLS data showed minimal employment growth from May, adding
80,000 jobs in June. However, the overall unemployment rate remains
unchanged at 8.2 percent. In June, retail sales fell more than expected
by 0.5 percent, compared with a 0.2 percent decline in May. Furthermore,
economic conditions in Europe remain unstable causing further volatility
within international financial markets. Asia is not immune from the
global economic slowdown either. According to the Financial Times, the
second quarter saw China’s growth rate fall to 7.6 percent, its lowest
since 2009.

At 8.8 million barrels per day, gasoline deliveries, a measure of
consumer gasoline demand, were down in June from last year. Gasoline
deliveries fell by 225,000 barrels per day in June compared with last
year. Compared with the prior month’s numbers, gasoline deliveries
remained virtually unchanged. For the first half of this year, gasoline
deliveries were lower 1.0 percent compared with the first half of last
year. This dip is smaller than the 1.7 percent decline seen in the first
half of 2008 during the financial crisis. For the second quarter,
gasoline deliveries averaged 8.8 million barrels per day, a drop of 0.5
percent from the same period last year.

PETROLEUM SUPPLY

Domestic crude oil production rose from the prior month, prior
year, prior year to date, and prior quarter. In June, crude oil
production rose by 1.2 percent from May and 10.7 percent from last year
to 6.197 million barrels per day -the highest June production level
since June 1998. A year-over-year increase was seen in crude production
for nine months in a row. Alaskan production in June was down 9.5
percent from last month and down 6.5 percent from last year to 517,000
barrels per day. The year-over-year decline was seen in Alaskan
production since February this year. The number of oil and gas rigs
decreased from 1,977 in May to 1,972 in June, according to the latest
reports from Baker-Hughes, Inc. The number of oil and gas rigs
continued to average under 2,000 in the first half 2012.

Refined product imports continued to be below the export levels
through the first half of this year. Total imports of crude and refined
products fell in June by 6.0 percent to average at 10.9 million barrels
per day. Imports of crude oil declined in June by 1.6 percent to average
9.1 million barrels per day. Canadian crude imports were up by 8.8
percent in June to average 2.2 million barrels per day. Canadian imports
made up nearly one quarter of total crude oil imports. Refined product
imports fell by 23.1 percent compared with last year, to 1.8 million
barrels per day. Gasoline and blending components imports were at 737
thousand barrels per day, a drop of 21.8 percent from June 2011 levels.
Distillate fuel oil imports fell 18.3 percent from last year, while Jet
fuel imports also fell by 70.7 percent from last year.

Although gasoline production was down for the second month in a
row, total refinery inputs and production of other major products all
rose in June. Inputs were 2.8 percent higher than last year’s levels, to
nearly 15.8 million barrels per day in June -the highest level so far
this year. Production of all four major products – gasoline,
distillate, jet fuel and residual fuels was greater than demand for
those products, so exports of refined petroleum products increased by
17.8 percent.

** MNI Washington Bureau: 202-371-2121 **

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