Oil

US distillate demand fell in December to lowest since June 2020, EIA says

Credit: REUTERS/David McNew

(Corrects November production figures in paragraph 6, please read "November's record 13.319 million bpd" instead of "13.314 million bpd")

By Shariq Khan and Georgina McCartney

Feb 29 (Reuters) - U.S. product supplied of distillate fuel oil declined in December to 3.61 million barrels per day (bpd), down about 10% from November and the lowest since June 2020, data from the Energy Information Administration showed on Thursday.

Mild weather and weak industrial output likely weighed on demand for distillate fuels including diesel and heating oil, UBS analyst Giovanni Staunovo said. The manufacturing PMI, a closely watched measure of activity, contracted for the 15th straight month in January.

Product supplied of distillates, the EIA's measure of demand, fell in December by 397,000 bpd from November, the biggest monthly decline since April 2020, the data showed.

Gasoline demand also fell in December, but by a much smaller margin. Product supplied of finished motor gasoline stood at 8.84 million bpd in December, compared with 8.85 million bpd in November, according to EIA's Petroleum Supply Monthly report.

Total demand for crude and petroleum products was 2% lower in December at 20.3 million bpd, the report showed.

U.S. crude oil production fell slightly in December to 13.315 million bpd from November's record 13.319 million bpd, according to EIA's monthly 914 production report, also released on Thursday.

Crude output in Texas fell by 20,000 bpd in December to 5.637 million bpd after hitting a record high in the previous month, the data showed. Output in Texas, the top U.S. oil producing state, fell for the first time since September, according to the EIA's latest estimates.

Output from neighboring New Mexico rose for the fifth consecutive month to a record high, up 1.2% to 1.928 million bpd, EIA said.

Staunovo said total U.S. production is likely to decline again in January due to a cold snap.

Gross natural gas production in the U.S. Lower 48 states jumped about 0.2% to a record 118.2 billion cubic feet per day (bcfd) in December, up from the previous record of 118 bcfd in November, EIA said.

In top gas-producing states, monthly output in December rose 0.4% in Texas to a new record of 34.9 bcfd, and 0.6% in Pennsylvania to 21.6 bcfd. (Reporting by Shariq Khan in New York, Georgina McCartney in Houston; Editing by David Gregorio) ((Shariq.Khan@thomsonreuters.com; Twitter/X: @shariqrtrs;)) Keywords: USA OIL/OUTPUT (CORRECTED, UPDATE 2)

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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