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:

PETROLEUM DELIVERIES

In 2011, domestic petroleum deliveries averaged 18.9 million
barrels per day, a drop of 1.2 percent from 2010. This was the second
largest drop in annual domestic deliveries in the last 10 years, after
2008. For the fourth quarter, domestic deliveries were down 0.5 percent
from the same period in 2010. December’s petroleum deliveries showed the
largest drop of 5.9 percent in 2011, from the prior year, to average
18.6 million barrels per day, a 15-year low for the month of December.
U.S. economic activity in the industrial and consumer retail sectors
continued to show mixed signs.

Despite the fastest expansion in the U.S. manufacturing sector in
2011, December’s holiday season retail sales were below expectations.
The “core” retail sales (excludes sales of autos, gas and building
materials) posted the first monthly drop in a year, according to the
latest reports from the Institute of Supply Management, U.S. Department
of Commerce and The Conference Board.

In 2011, gasoline deliveries dropped by 2.1 percent from the prior
year, the second largest year-over-year decline since 1980. For the
fourth quarter, gasoline deliveries fell by 0.5 percent from the fourth
quarter of 2010, reflecting weak consumer demand and concerns in the
labor market. For December, gasoline deliveries slumped to a 13-year low
averaging 8.5 million barrels per day, a drop of 4.3 percent from
December 2010.

December’s gasoline deliveries were the second-lowest in 2011 after
January’s gasoline deliveries. Despite the decline in demand for refined
products, the supply of refined petroleum products remained ample.
Gasoline production for the year 2011 was at a record high averaging 9.1
million barrels per day. This was 0.5 percent higher than the 2010
average production volume. For December, gasoline production fell by 5.4
percent to reach 8.8 million barrels per day.

The largest volumetric increase among the major products for 2011
was for distillate fuel oil. Distillate fuel deliveries averaged 3.9
million barrels per day in 2011, an increase of 3.2 percent from the
prior year and reached a three-year high. For the fourth quarter of
2011, distillate fuel deliveries were up 6.8 percent. For December,
distillate fuel deliveries were at 3.9 million barrels per day, the
second highest monthly average in 2011 after January, but down 4.9
percent from December 2010. High-sulfur distillate fuel deliveries were
down over 34 percent in December while Ultra-low sulfur distillate fuel
(ULSD) deliveries were up by two percent. ULSD deliveries for 2011 were
up 9.7 percent from the prior year.

Distillate fuel production was at a record high for the year 2011,
for the fourth quarter and for the month of December. At 4.5 million
barrels per day, distillate fuel production was up by 6.1 percent from
2010 production average. Jet fuel deliveries were up 0.7 percent in 2011
compared with 2010 to average 1.4 million barrels per day. Residual fuel
deliveries were down 16.4 percent in 2011 compared with 2010 to average
447 thousand barrels per day.

PETROLEUM SUPPLY

Crude oil production rose 2.5 percent in 2011 compared with the
prior year to average 5.6 million barrels per day. For December,
production averaged 5.5 million barrels per day, an increase of 0.5
percent from December 2010. Crude oil production average was at an
eight-year high for the month of December. Natural gas liquids
production increased on a monthly, quarterly and annual basis. Total
domestic supply strengthened in 2011 compared with 2010, with a 4.0
percent increase to 8.8 million barrels per day. In 2011, exports were
up 25.5 percent compared with 2010. December’s export volumes averaged
3.6 million barrels per day, an increase of 34.3 percent from the same
month in 2010.

The total number of oil and gas rigs remained above 2,000 for the
third month in a row but declined slightly from November to 2,003,
according to the latest Baker-Hughes Inc. report.

Total imports of crude oil and refined products dropped 5.6 percent
in 2011 compared with 2010. Crude oil imports fell by 3.4 percent and
refined products imports were down 14 percent compared with 2010
averages. For the fourth quarter, total imports averaged 10.7 million
barrels per day, down by 3.6 percent from the same period in 2010. For
December, total imports averaged 10.4 million barrels per day, down by
6.9 percent from December 2010. Crude oil imports were slightly up in
December at 8.7 million barrels per day while product imports were down
over 33 percent to reach 1.6 million barrels per day. Imports of motor
gasoline and blending components fell by 22.4 percent in December.

Refinery inputs fell by 1.5 percent in 2011 compared with 2010. On
a quarterly basis, inputs were down 0.1 percent from the fourth quarter
of 2010. For December 2011, refinery inputs were at 14.9 million barrels
per day, down 0.4 percent from December 2010. In 2011, jet fuel
production averaged 1.5 million barrels per day, up by 3.0 percent from
2010, and residual fuel production averaged 540 thousand barrels per
day, down by 7.8 percent from 2010.

Crude oil stocks ended the year slightly up from 2010. At 334.6
million barrels, December’s crude oil stock levels were up 0.4 percent
from 2010 and down 0.1 percent from November 2011 levels. Crude oil
stocks were at a 17-year high in December. Motor gasoline stocks were up
from the prior month and the prior year and finished December at 219.7
million barrels. Distillate fuel stocks were down 11.4 percent from 2010
ending stock levels, at 145.6 million barrels and a five-year low for a
December. Total oils, at 974.1 million barrels, were up 3.5 percent from
2010 levels and up 4.9 percent from November 2011 levels

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

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