New York, NY, United States (4E) – The U.S. recorded a rise in fuel consumption for the month of July, according to the American Petroleum Institute (API) report released on Thursday.
U.S. demand for oil jumped 1.7 percent on the year in July to 18.925 million barrels per day, the strongest demand in the month within the last three years, the Washington-based API said.
In an interview, API chief economist John Felmy said that the increase in demand is a reflection of the economy. Despite the continued weakness in the overall economy, there are positive signs of growth, Mr. Felmy said.
The figure in July was an increase of 1.8 percent from June, when oil demand in the world’s biggest consumer of oil declined to its lowest level in 16 years.
Most categories posted an improvement in consumption from a year ago. Gasoline demand increased 2.2 percent to 9.02 million barrels per day, jet fuel 2.3 percent to 1.5 million barrels per day and ultra-low-sulfur diesel 9.1 percent to 3.66 million barrels per day. Use of diesel grew 8 percent to 3.84 million barrels per day, though heating oil fell 27 percent to 139,000 barrels per day.
Production of crude oil in the U.S. surged 17.4 percent from the previous year to 7.498 million barrels per, a 25-year high for the month of July, as new technology like horizontal drilling and hydraulic fracturing helped unlock oil deposits trapped in shale rocks found across the country. Output of crude reached a 22-year high for any month, API said.