October U.S. crude oil production averaged 5.36 million barrels per day, continuing at levels not seen since 2005, according to API's Monthly Statistical Report.

Crude production from the Lower 48 states averaged 4.67 million barrels per day, up from both last year and prior months. And Alaskan output, at 696,000 barrels per day, slipped from last October by 2.8 percent but rebounded from this summer's lows of less than 600,000 barrels per day.

About the production numbers, API's statistics manager Ron Planting said:

"The October production figures continue to detail the industry's success story in the Gulf of Mexico, particularly the deep waters, as well as the way new technologies have helped bring on new production both offshore and onshore."

On the demand side, October gasoline deliveries showed their first decline since May, dropping 0.5 percent from last October's surge that followed hurricane-related supply interruptions of September 2008.

Economic indicators continue to suggest that demand for diesel-powered freight traffic is down substantially. The Federal Reserve Board's industrial production index, for example, was flat for October and was still running more than 7 percent below year-ago levels.