The American Petroleum Institute’s latest monthly statistical report shows the US set a record for the production of natural gas liquids (NGL) last month producing 4.4 million bpd. July also saw the US tie its record for crude oil production at 10.7 million bpd.
“With total US liquid fuels production, up by more than 2.0 million bpd year-over-year, the US has been the world’s only substantive source of oil production growth so far in 2018 and more than compensated for production losses in some OPEC nations,” said API Chief Economist Dean Foreman. “As a result, domestic oil prices have remained lower than international ones which is good news for consumers. Historically, the more supply that has been brought to the market the better the chances have been for putting downward pressure on prices at the pump.”
Meanwhile, US petroleum demand in July sustained its highest level in 11 years, 20.6 million bpd, which reflected solid economic activity. However, nearly all demand growth between June and July stemmed from residual fuel oil and, to a much lesser extent, kerosene jet fuel. For residual fuel oil, the change ran contrary to typical seasonal demand and suggested an acceleration in marine shipping activity with escalating US trade disputes.
- Strongest US petroleum demand year-to-date since 2007.
- US crude oil prices rose on strong domestic demand.
- US petroleum net imports rose 450 000 bpd in July.
- Highest refinery throughput for the month of July (17.7 million bpd).
- US petroleum inventories increased to above the median of the 5 year range.
Read the article online at: https://www.worldpipelines.com/business-news/17082018/new-record-for-ngl-production-in-the-us/