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

In August, U.S. petroleum deliveries continued to experience
year-to-year increases – but at 0.4 percent, this increase was the
smallest this year with the exception of January 2010. On a year-to-date
basis, total deliveries were up by 1.3 percent compared with the same
period in 2009. Motor gasoline demand, as measured in deliveries,
continued to remain weak in August. The peak driving season of June
through August of this year saw its lowest gasoline deliveries levels
since 2000 with the exception of 2008.

August gasoline deliveries at 9.22 million barrels per day were 0.8
percent below prior year levels and marginally below July 2010 gasoline
deliveries. While total distillate deliveries were higher in August 2010
compared with August 2009, ultra-low sulfur distillates (ULSD), the type
used for on-highway fuel, were down slightly by 0.1 percent – also
reflecting a slowing economy. Residual fuel oil deliveries in August
declined by 7.9 percent and were at its lowest level on record for any
August.

U.S crude oil production fell by 0.5 percent in August compared
with a year ago. The drop was driven by a fall in Alaskan production by
4.4 percent from a year ago, typical during the seasonal maintenance
cycle every year. Crude production in the Lower 48 states remained flat
in August 2010 compared with a year ago at 4.85 million barrels per day.
U.S. rig counts jumped in August to 1638 from July or by 4.13 percent,
according to Baker Hughes Inc.

Crude oil imports, at 9.8 million barrels per day, were up for the
third month in a row and saw year-to-year increases by 11.2 percent.
While being up from 2008, crude import levels were also the lowest for
any August since 2002. Product imports showed 6.3 percent drop from
August 2009 but were up from July 2010 by 6.5 percent. In August this
year, total imports recovered from July by moving up to 12.0 million
barrels per day and higher from August 2009 by 7.5 percent.

August’s refinery inputs were up by 1.1 percent from prior year.
Production was higher for all products with the exception of residual
fuel oils compared with a year ago but showed declines across all
products compared with July 2010 reflecting weakening output conditions
through the summer of this year. Operable capacity slipped by 0.1
percent from prior year while refinery utilization rate was higher in
August 2010 by 1.0 percent compared with a year ago.

Crude oil inventories resumed their increase in August and were
higher compared with prior year and prior month. Crude stocks did show
declines in May and June of this year compared with the prior year.
Total motor gasoline stocks and residual fuel oil stocks showed year
over year builds while distillate fuels and kerosine-jet showed year
over year declines in inventories. Compared with July 2010, all products
showed increases in inventories in August, with the exception of
residual fuel oils. Monthly U.S. crude stock levels with the exception
of the strategic reserves are at the highest level for any August since
1990.

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

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