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 October
released Friday:

PETROLEUM DELIVERIES

In October, with ongoing signs that the U.S. economy was
experiencing modest economic growth, total petroleum deliveries were at
19.4 million barrels per day gaining 2.5 percent from the total
deliveries last year. Total deliveries were at a three-year high for the
month of October. Manufacturing output continued to strengthen this
month as the ISM Manufacturing Index Survey showed continued expansion
for the 27th consecutive month. However, according to the Conference
Board’s Consumer Confidence Index Survey, October’s 39.8 reading was at
a record low for the year.

Distillate fuel deliveries, at 4.2 million barrels per day, were
reflective of the manufacturing expansion with 12.3 percent year over
year growth in October driven by increases in ultra-low sulfur
distillate fuel deliveries, primarily used for on-highway traffic.
Distillate fuel deliveries were at their highest October levels since
2006. Unconventional natural gas production could be a possible driver
for the increased distillate fuel usage, primarily to transport water in
and out of the producing sites.

Gasoline deliveries, at 8.9 million barrels per day, a reflection
of consumer confidence, fell slightly by 0.3 percent and were at the
second-lowest October levels since 2002. Gasoline deliveries were down
on a year-to-date basis compared with last year while distillate
deliveries were up for the same period. Jet fuel deliveries went up in
October while residual fuel deliveries collapsed with a 45% decline year
over year. Exports of petroleum products jumped 37.6 percent from last
October to reach 3.4 million barrels per day. On a year-to-date basis,
exports were up by 23.1 percent compared with last year.

PETROLEUM SUPPLY

Crude oil production increased in October compared with the prior
year. At 5.7 million barrels per day, production was higher than last
October by 1.7 percent and jumped to a 10-year high for the month. On a
year-to-date basis, production was up by 2.4 percent. Production in the
Lower 48 states was up by 2.3 percent to 5.1 million barrels per day
with big production increases in the Rocky Mountain region. Alaskan
production was at 599 thousand barrels per day, down from last October
by 3.1 percent. Natural gas liquids production continued to ramp up
through the year and reached 2.2 million barrels per day, a 3.1 percent
jump from last year. The total number of oil and gas rigs crossed 2,000
in October for the first time in three years and jumped by 39 from
September to 2,017, according to the latest Baker-Hughes Inc. report.

Total imports of petroleum products were down from last year by 2.8
percent, at 10.8 million barrels per day. Crude imports jumped by 7.7
percent to 9.2 million barrels per day and product imports fell by 37.4
percent to 1.6 million barrels per day, compared with last year.
Canadian imports of crude oil, a reliable source for the U.S. petroleum
supply mix, showed a 14.9 percent jump from last year to average 2.1
million barrels per day in October. Jet fuel imports were strong, with a
28.6 percent jump from last year’s levels. Distillate fuel imports were
up 6.6 percent.

Even with the slight drop in refinery inputs in October this year
compared with last year, gasoline and distillate fuel production were up
by 4.0 percent and 4.9 percent respectively. Both gasoline and
distillate fuel production were at a record high for any October and at
a record high on a year-to-date basis. Jet fuel production showed double
digit production increases while residual fuel production fell slightly
in October.

In October, Crude oil and key refined product inventories fell from
the prior month and the prior year. At 954.9 million barrels, total
stocks were down 3.2 percent from last October and down 0.1 percent from
September. Crude oil stocks were at 339.9 million barrels, a drop of 7.5
percent from last year but at their highest October levels since 1994,
with the exception of October 2010. Gasoline inventories at the end of
the month totaled 207.9 million barrels, a drop of 0.9 percent from last
October and fell to a three-year low. Distillate inventories showed
double digit declines from last year, at 143.2 million barrels and fell
to a three-year low for the month of October.

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

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