U.S. PETROLEUM DEMAND UP BY 750 TBD
API - American Petroleum Institute reported that the first four months of this year saw U.S. petroleum demand average 750 thousand barrels a day above the same period in 2017 despite higher prices, a sign of solid economic activity. April also saw the U.S. produce a record 10.5 million barrels per day (MBD) of oil.
"Iranian oil supply uncertainty has recently dominated global oil market news, but a key figure from the United States should trump that concern: two million barrels per day of U.S. production," said API Chief Economist Dean Foreman. "The strong supply figure was also backed by strong petroleum demand of over 20.3 MBD last month, motor gasoline demand for first four months of 2018 was the second highest on record. Economic fundamentals continue to propel petroleum markets at home and abroad."
Consumer gasoline demand, as measured by total motor gasoline deliveries, of 9.3 MBD in April was up by 1.3 percent from March and 1.1 percent versus April 2017. The first four months of the year achieved the second highest year-to-date demand (9.1 MBD) on record.
Strong global demand raised international oil prices by more than domestic ones. Domestic WTI crude oil prices averaged $66.25 per barrel in April, up by 5.6 percent from March and 29.7 percent versus April 2017. Meanwhile, international Brent crude oil prices continued to increase by more – 8.5 percent m/m in April to $71.63 per barrel, which reinforces global economic and oil demand strength.
WTI crude oil traded as an average discount of $5.38 per barrel below Brent in April, which was the second consecutive monthly increase in the price differential and returned it to the same level as in January. As U.S. production has expanded rapidly, infrastructure constraints continued to suppress WTI prices. By comparison, Light Louisiana Sweet crude oil had weaker constraints and traded at a discount to Brent of $2.23 per barrel in April.
- U.S. petroleum sustained its highest levels in 11 years.
- Distillate fuel rose un-seasonally to 4.2 MBD.
- Jet fuel demand achieved its strongest April on record.
- Strong global demand raised international oil prices by more than domestic ones.
- The U.S. petroleum trade balance shrank by 380 KBD for the month of April.
- U.S. petroleum exports set new record above 7.0 MBD in April.
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U.S. FRB - Industrial production edged up 0.1 percent in July after rising at an average pace of 0.5 percent over the previous five months. Manufacturing production increased 0.3 percent, the output of utilities moved down 0.5 percent, and, after posting five consecutive months of growth, the index for mining declined 0.3 percent. At 108.0 percent of its 2012 average, total industrial production was 4.2 percent higher in July than it was a year earlier. Capacity utilization for the industrial sector was unchanged in July at 78.1 percent, a rate that is 1.7 percentage points below its long-run (1972–2017) average.
NPD - Preliminary production figures for July 2018 show an average daily production of 1 911 000 barrels of oil, NGL and condensate, which is an increase of 64 000 barrels per day compared to June.
GAZPROM NEFT - For the first six months of 2018 Gazprom Neft achieved revenue** growth of 24.4% year-on-year, at one trillion, 137.7 billion rubles (RUB1,137,700,000,000). The Company achieved a 49.8% year-on-year increase in adjusted EBITDA, to RUB368.2 billion. This performance reflected positive market conditions for oil and oil products, production growth at the Company’s new projects, and effective management initiatives. Net profit attributable to Gazprom Neft PJSC shareholders grew 49.6% year on year, to RUB166.4 billion. Growth in the Company’s operating cash flow, as well as the completion of key infrastructure investments at new upstream projects, delivered positive free cash flow of RUB47.5 billion for 1H 2018.
REUTERS - Front-month Brent crude oil futures LCOc1 were at $72.34 per barrel at 0648 GMT, down by 12 cents, or 0.2 percent, from their last close. U.S. West Texas Intermediate (WTI) crude futures CLc1 were down 23 cents, or 0.3 percent, at $66.81 per barrel.