NEW YORK – For the first time in a decade, total U.S. petroleum demand declined in 2001, falling 0.6 percent from the year before to an average 19.587 million barrels per day, the American Petroleum Institute reported.
Meanwhile, over the past week, U.S. crude stocks rose by 1 million barrels, according to the latest inventory data released by the U.S. Energy Information Administration. The data softened the impact of API data that indicated stocks had risen by more than 4 million barrels.
Distillate stocks, including heating oil and diesel fuel, dipped 300,000 barrels, while the API reported a larger, but still lower-than-expected, draw of 875,000 barrels.
API data showed an implied demand of just above 4.0 million barrels per day for distillates last week, substantially higher than the 3.2 million bpd, a 1-1/2 year low, the week before.
The EIA report indicated gasoline stocks rose 2.8 million barrels, less than the 4.2 million barrel rise reported by the API, which showed demand falling to 8.0 million bpd from 8.8 million bpd in the previous week.
The market's main worry remains slumping demand, which showed a marked decline following the Sept. 11 attacks, the event that worsened an already sluggish economy.
API data showed that in December the nation's demand for oil products dropped 6.9 percent below the year-ago level. API cited sharply reduced air travel in the aftermath of Sept. 11, the lackluster economy, industrial fuel switching from residual fuel oil to cheaper natural gas and abnormally warm winter temperatures, as reasons for the falloff.
With demand so sluggish, it remains to be seen whether the Organization of Petroleum Exporting Countries and other producing states like Norway, Russia and Mexico keeping their promise of a nearly 2 million barrel-per-day production cut kicked off January 1.
