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 »

May 2010 gasoline deliveries (an indication of demand) fell 0.4 percent from the same month last year to an average of 9.05 barrels per day. API's Monthly Statistical Report says this was the lowest level for May since 2003.

Average regular-grade gasoline prices were 57 cents per gallon higher last month as compared with May 2009. (EIA) API Chief Economist John Felmy said the demand dip shows "gasoline demand is more sensitive to higher prices and to the effects of the sluggish economic recovery than distillate and jet fuels, which both saw increased demand in May..."

Demand for distillate, which includes diesel fuel used for highway travel as well as other modes of transportation, surged 7.8 percent last month from May 2009. This was the second consecutive month that demand improved on a... more »

The Memorial Day weekend traditionally is considered the beginning of the summer driving season, and this weekend travelers will receive a nice surprise at the pump.

API's Chief Economist John Felmy says gasoline prices have fallen 18.0 cents in the past three weeks, following a drop in crude oil prices. According to AAA, U.S. gasoline prices today average $2.749 a gallon, down from a recent peak of $2.929 on May 5.

The price of crude oil is the single largest factor in pump prices. The U.S. Energy Information Administration says crude oil accounts for about 69 percent of the pump price. Yesterday, the price of crude oil stood at $74.55 a barrel, which is significantly lower than the recent peak of $86.19 a barrel on May 3. The Philadelphia Inquirer reports crude prices have declined due t... more »

API reported today that April gasoline production climbed to 9.1 million barrels per day, which is the highest level ever for April and second highest level for any month on record, according to the Monthly Statistical Report.

Gasoline demand also rose last month, and U.S. refinery utilization climbed above 85 percent for the first time this year. API Chief Economist John Felmy said the data indicates that refiners are cognizant of consumers' need for gasoline and are producing fuel to keep America moving.

In one particularly bright spot, the April statistics showed that U.S. distillate demand surged 6.7 percent over the April 2009 level. The demand for distillates, including diesel fuel, historically has had a strong correlation with economic activity.

In April, demand for Ultra-Low Sulfu... more »