US petroleum demand shrinks to lowest level since 2003

While US gasoline demand (measured as deliveries) ticked up 2 % for February, perhaps in response to lower prices, February diesel demand plunged 12 % and jet fuel demand dropped 6.6 % from a year ago, reflecting the faltering economy, according to API's Monthly Statistical Report.
Overall, total oil-product demand fell 3 % from a year ago, marking the lowest demand for a February since 1999. With demand off, refinery inputs fell -- by 2.9 % from a year ago -- to their lowest February level since 2002.

Even so, industry gasoline production averaged over 8.8 mm bpd, the highest ever for February, and distillate production reached an all-time February high of 4.25 mm bpd. Refinery production of both jet fuel and residual fuel oil dropped from a year ago.
"It appears that for now, the troubled economy has had a greater impact on the demand for diesel and jet fuel than for gasoline," said API statistics manager Ron Planting.

US crude oil production surpassed 5.3 mm bpd for the first time since hurricanes Katrina and Rita struck the Gulf of Mexico in 2005. The 5.5 % increase over last February output level reflects the return of Gulf facilities that had been shut last year by hurricanes Ike and Gustav as well as additional output from BP's Thunder Horse platform, which is being ramped up. Lower 48 production in February rose 6.3 % from a year ago, while Alaskan production rose by 0.7 %.
With weak demand and an increase in domestic production, February's imports fell 1.8 % from a year ago, largely reflecting a nearly 5 % drop in crude oil imports. Refined products imports rose 8.2 % over year-ago levels.

Among the major products, gasoline imports rose more than 13 % from a year ago to 1.14 mm bpd, the highest for February in three years. Distillate imports rose by about 10 % from last year's recent February low of 272,000 bpd.
Resid imports nearly doubled -- to 591,000 bpd -- their highest level since late 2005.