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

PETROLEUM DELIVERIES

For the second month in a row, motor gasoline deliveries, a measure
of demand, fell from the prior year. With the exception of May 2009,
gasoline deliveries were at an eight-year low for the month. Gasoline
deliveries, at 9.2 million barrels per day, were down by 0.7 percent
from last year and down by 1.9 percent on a year-to-date basis.
Reformulated gasoline (RFG), the kind used in metropolitan areas as
mandated by the Clean Air Act was down by 6.1 percent compared with last
year possibly due to higher price and transit alternatives for
consumers. Regular gasoline prices averaged $3.906 per gallon, an
increase of 2.8 percent from April’s average gasoline price. May’s
gasoline deliveries were however higher than April’s volumes by 2.8
percent.

Total domestic deliveries, at 19.5 million barrels per day, were
higher by 3.7 percent from last year, boosted by increases in distillate
fuel deliveries and declines in on-highway diesel prices in May. ULSD
prices in May stood at $4.047 per gallon, a drop of 0.5 percent from
April’s average diesel price. Although lower than April’s volumes,
deliveries of ultra-low sulfur distillates, the kind used for on-highway
traffic were higher by nearly 25 percent from last year’s deliveries.
Total distillate fuel deliveries in May were down by 8.9 percent
compared with the prior month.

Jet fuel deliveries were down by 7.3 percent to their lowest levels
since January 2009 while residual fuel oil deliveries were up by 11.8
percent from last May. Exports of petroleum products continued to show
strong signs of growth through the first five months of the year. May’s
export volumes were up by 2.9 percent compared with last year and up
18.7 percent on a year-to-date basis.

PETROLEUM SUPPLY

Crude oil production in May fell by 1.6 percent, compared with last
year, to 5.4 million barrels per day. On a year-to-date basis, crude oil
production was slightly up by 0.3 percent. Crude oil production in the
lower 48 states fell by 2.7 percent to 4.8 million barrels per day while
Alaskan crude oil production increased by 8.1 percent to 615 thousand
barrels per day. According to Baker Hughes Inc., the number of oil and
gas rigs jumped from April to May, up by 40 to 1836, a three-year high.

For the first five months of this year, total imports of crude and
petroleum products were down compared with last year. May imports were
lower by 9.6 percent. Crude imports dropped by 8.8 percent for the
second month in a row while refined product imports continued their
year-over-year declines for the fifth month in a row, down by 12.6
percent in May.

Although refinery inputs were down in May, for the fourth month in
a row, by 4.8 percent compared with last year, gasoline production was
ramped up. Compared with last year, motor gasoline production was higher
by 2.0 percent while production of other key refined products were down
including distillate fuel, jet fuel and residual fuel. Gasoline
production, at 9.4 million barrels per day, was at record high for the
month of May and at record high for the year to date. Distillate fuel
production, at 4.3 million barrels per day, was lower than 2008 and 2010
levels for the month of May. Crude oil runs and refinery utilization
continued to lag last May’s levels.

Crude oil inventories continued to build for the fifth month in a
row and were at a record high level for the month of May since 1980. At
367.6 million barrels, crude oil inventories were up by 0.7 percent from
April and 2.6 percent from last year. All refined product stocks were
down compared with the prior year. Compared with April’s inventory
levels, gasoline and jet fuel showed stock build while distillate and
residual fuels showed stock declines.

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

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