WASHINGTON (MNI) – The following is the text of the summary of the
American Petroleum Institute’s monthly report on domestic petroleum
deliveries, gasoline deliveries and crude oil production for September
released Friday:

In September, U.S. petroleum deliveries, an indicator of petroleum
demand, appear to have moved up a notch from mixed to positive territory
across all the key refined products. All product deliveries were higher
in the third quarter of 2010 compared with the same period last year.
Total deliveries in the third quarter of 2010 were up by 1.9 percent
compared with the third quarter of 2009. Total domestic deliveries were
1.8 percent higher in September 2010 compared with September 2009
indicating a shift from economic stagnation to that of economic
recovery.

Total motor gasoline deliveries reversed its year-over-year
declines for the past four months, May through August of this year, but
remained weak at 0.1 percent higher in September 2010 compared with
September 2009. Distillate deliveries were up 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 fuel, indicating a
positive shift in industrial activity towards the end of the third
quarter. Residual fuel deliveries jumped 41.3 percent this September
from prior year while all other oils declined by 2.8 percent. Jet fuel
deliveries appears to have been strengthening for the past three months
and in September showed a strong 11.6 percent growth from September
2009.

September’s domestic crude oil production, at 5.5 million barrels
per day, rose to its highest level since April 2010. Lower 48
production, at 4.87 million barrels per day, held relatively steady
compared with recent prior months and was up 1.5 percent from September
2009 levels. Alaskan crude oil production, at 636 thousand barrels per
day, in September 2010 rebounded higher from the recent summer lows, but
finished lower than prior year levels by 2.5 percent. According to Baker
Hughes Inc., the U.S. rig counts for September 2010 was 1,655, up 17
from the 1,638 counted in August 2010 and up 646 from the 1,009 counted
in September 2009.

This September’s crude oil and product imports, at 10.9 million
barrels per day, were lower than prior year by 7.0 percent, driven by
big declines in product imports. Total product imports, at 1.9 million
barrels per day in September 2010, were 23.0 percent lower than last
September levels. Total motor gasoline imports fell by 0.7 percent this
September compared with the prior year while all other product imports
saw huge declines from last year by 33.7 percent. Crude oil imports, at
8.9 million barrels per day, were lower by 2.7 percent compared with
September 2009.

At refineries, September’s inputs to crude distillation units were
lower than August 2010 and September 2009 levels, at 14.8 million
barrels per day, but output of major refined products increased with the
exception of residual fuels. Refinery utilization rates this September,
at 84.0 percent, were lower than August 2010 and September 2009. However
for the third quarter of 2010, utilization rates were at 86.7 percent,
2.3 percent higher than the third quarter of 2009. Gasoline production
for September 2010 was at its highest level on record for any September.

Crude oil and product inventories showed mixed trends this
September compared with last year. Crude oil inventories at 363.1
million barrels were 8.4 percent higher than last year, were at its
highest level for 2010 and the highest for any September since 1980.
Total motor gasoline, jet fuel oils and residual fuel oils indicated
higher stock levels in September 2010 compared with year-ago levels
while distillate fuel oil stocks showed declines along with ‘other
oils’. Similar mixed trends in the stock levels were seen on a quarterly
basis, when comparing third quarter data in 2010 with that of 2009.

** Market News International Washington Bureau: 202-371-2121 **

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