US fuel exports rise as record refinery production exceeds local demand

Total petroleum deliveries (a measure of demand) fell slightly in October by 0.3% from year ago levels, according to the American Petroleum Institute's (API) monthly statistical report for October 2015. 

Production of all four major products -- gasoline, distillate, jet fuel and residual fuels -- was higher than deliveries for those products, so refined products were exported.

“October brought strong demand for gasoline, but record refinery production actually outstripped demand for all four major petroleum products,” said API chief economist John Felmy. “Fortunately, the rest of the world is also eager to buy from US refineries.”

Total motor gasoline deliveries (a measure of demand) rose 0.8% from October 2014 to just above 9.2 million bpd. Distillate deliveries decreased by 3.7% from October 2014 to average 4.1 million bpd in October.

At an average of nearly 9.2 million bpd, US crude oil production in October increased 0.3% from October 2014. October’s crude oil production was the highest since 1973 and the highest year to date in 43 years, since 1972. Natural gas liquids (NGLs) production in October averaged nearly 3.3 million bpd, which was the highest for the month on record.

US total petroleum imports in October averaged nearly 9.4 million bpd, up 5.5% from the prior year. Meanwhile, crude oil imports in October rose 8.3% from October 2014 to average 7.7 million bpd.

Gasoline and distillate production rose to the highest level ever for the month.  Production rose 3% from October 2014 to an average of 9.8 million bpd. Production of distillate fuel rose by 3.5% to reach an average output of 4.8 million bpd.  

The refinery capacity utilization rate in October averaged 87.4%. This was down 0.3% from the same period last year.