Total U.S. refined oil product demand continued to fall in January though the month’s 3.1 percent year-on-year decline was more moderate than 2008’s six-percent annual fall, according to API’s Monthly Statistical Report. While overall oil demand, as measured as domestic deliveries, was down in January to 19.5 million barrels per day, U.S. gasoline demand registered its first monthly year-on-year increase in more than 12 months. U.S. gasoline demand grew 1.7 percent over year-ago levels, the API data show. Deliveries of distillate fuel oil, which includes diesel fuel, fell 3.5 percent, and jet fuel deliveries slipped nearly 9 percent. Residual fuel oil deliveries were up 6.2 percent from last January’s record low. “All told, weak demand across the board has given us the lowest deliveries for January in seven years,” said API statistics manager Ron Planting. U.S. crude oil production rose above 5.1 million barrels per day in January as a 1.8 percent increase in output from the lower 48 states offset a 1.1 percent decline in Alaskan crude oil production. U.S. gasoline production rose 1.7 percent from year-ago levels as a record amount of gasoline was produced during the month of January. U.S. refiners produced 6.7 percent more distillate in January compared with year-ago levels, also a record for the month. Import volumes continued to reflect weakening oil demand, as the combined volume of crude oil and product imports dropped to the lowest January level since 2005 at 12.9 million barrels per day. Crude oil imports fell to 9.66 million barrels per day, the lowest level for the month in five years. Inventories of crude oil and all major refined products rose during the month. Crude stocks ended the month at their highest end-January level since 1990. Unusually, distillate inventories posted a counter-seasonal build and gasoline inventories also climbed during the month.

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