The faltering economy appears to be a primary reason for a slight drop in U.S. gasoline demand. According to API's Monthly Statistical Report issued this morning, U.S. gasoline deliveries (a measure of demand) fell by 0.03 percent in July as compared to the same period a year ago. Except for 2008, it was the lowest July gasoline demand figure since 2003.

"With unemployment high and July regular gasoline prices more than 20 cents a gallon above those a year ago, consumers likely have been shopping and vacationing less and trimmed their gasoline purchases accordingly," said API Chief Economist John Felmy.

Overall demand for oil products rose 3.8 percent in July over the same month last year. Demand for the type of diesel fuel used in trucks was up significantly.

"This suggests some growth in... more »

Gasoline demand fell for the first six months of 2010, API reported today. According to the Monthly Statistical Report, U.S. gasoline deliveries (a key indicator of demand) averaged 8.88 million barrels per day, 0.6 percent lower than in the same period in 2009.

Gasoline deliveries in June, which is considered a peak month for vacations and the annual travel season, were at the lowest level for any June since 2004.

As API's Chief Economist John Felmy explained:

"The listless economic recovery continues to take a bite out of gasoline demand...This certainly supports API's position that increased taxes or other anti-jobs policies by Congress or the administration could increase unemployment and harm our economic recovery."

Other data from the June statistical report indicated that:

• Demand... more »