API: Rising Demand for Petroleum Indicates a Shift from Economic Stagnation to Economic Recovery

WASHINGTON, October 15, 2010 – "U.S. petroleum demand strengthened for all key refined products in September, indicating a shift from economic stagnation to economic recovery, according to the American Petroleum Institute's (API) Monthly Statistical Report for September.

September distillate deliveries surged 6.9 percent compared with September 2009, driven by a robust demand recovery in ultra-low-sulfur distillates (ULSD), the type used for on-highway truck diesel fuel, indicating a bounce in industrial activity toward the end of the third quarter. September ULSD deliveries averaged 3.1 million barrels per day, up 9.4 percent from the same month a year ago. For the first nine months of 2010, ULSD deliveries averaged 2.95 million barrels per day, a 2.4 percent increase over the first nine months of 2009.

“The September data suggests a move toward economic recovery,” observed API Chief Economist John Felmy. “Stronger distillate demand indicates an uptick in industrial activity, while stronger jet fuel and gasoline demand point to increased business and consumer confidence.”  Jet fuel demand in September jumped 11.6 percent from 2009 to average 1.6 million barrels per day, while September total gasoline demand ticked up 0.1 percent over the same month a year ago to average 8.9 million barrels per day."