API: February Distillate Demand Lowest for Month in 24yrs
3/23 12:37 PM
API: February Distillate Demand Lowest for Month in 24yrs OAKHURST, N.J. (DTN) --- The American Petroleum Institute's latest Monthly Statistical report show distillate deliveries in February at 3.7 million bpd, the lowest for the month since 1999. API reports February distillate deliveries down 4.4% from the prior month and 12% lower than February 2022. DAT iQ industry trendlines showed that the quantity of spot trucks in February decreased 9.7% month-on-month while the number of spot load posts declined by 17.4% month-on-month which together showed that the relative number of loads to be shipped decreased by more than that of trucks available in February, consistent with reports that U.S. freight volumes fell. The data show motor gasoline demand at 8.6 million bpd in February, the highest figure since November 2022. Though motor gasoline demand had the smallest year-on-year increase for the month since 2011, demand was up 4.8% from January -- compared with an average increase of 3.6% for the same period for the past decade. Deliveries of reformulated-type gasoline, consumed primarily in urban areas, rose 3.8% year-on-year to 2.9 million bpd, its highest for the month since 2019. And conventional gasoline, consumed mainly in rural areas, deliveries rose 5.4% month-on-month to 5.8 million bpd. API said these observations likely reflect a continuation of essential driving and an increase in miles driven in urban areas. At 1.4 million bpd in February, kerosene-type jet fuel demand declined 0.8% from the prior month but was still within the five-year average. High frequency data from "Flightradar24 and TSA showed that the total numbers of flights and air passengers increased by 7.5% y/y and 18.3% y/y, respectively." Report by the Airlines Reporting Corporation states a return of air passenger demand to pre-pandemic seasonality trends. In contrast, North American air cargo has had a soft start to 2023, and recorded a decrease in demand, per the International Air Transport Association. API reports deliveries of refinery and petrochemical liquid feedstocks, which include naphtha, gasoil, and propane/propylene, were 5.5 million bpd in February, a decrease of 3.9% from the prior month and 1% below February 2022. Data show the second highest residual fuel oil demand for the month of February on record since 2012. Residual fuel oil, which is used as a marine bunker fuel and internationally in electric power production, space heating and industrial applications, saw demand in February of 300,000 bpd, an increase of 19.8% from January yet down 5% from February 2022. The year-on-year decrease was consistent with reports of a slowdown in U.S. freight movement. U.S. petroleum demand, as measured by total domestic petroleum deliveries, was 19.8 million bpd in February, up 45,000 bpd from January while down 3.1% versus February 2022. API reports an increase in motor gasoline and residual fuel oil resulted in a slight increase for the month whole on a yearly basis, reduced petroleum demand was the result of distillates falling 0.5 million bpd year-on-year. (c) Copyright 2023 DTN, LLC. All rights reserved.
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