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Oil Demand Decline Slows in July

Jane Van Ryan

Jane Van Ryan
Posted August 19, 2009

According to API's monthly statistics report, July oil product deliveries--a measure of demand--fell 3.0 percent from a year ago, which slowed the rate of decline by half compared with the first half of the year.

Despite the overall decline in product deliveries, gasoline deliveries rose a modest 0.8 percent, and distillate fuel oil deliveries (including diesel fuel) marked their first month in almost two years without a significant dip. Jet fuel deliveries fell nearly 12 percent from a year ago to their lowest July level since 1993, and residual oil deliveries dropped by more than one-fourth.

"The data are consistent with reports the economic downturn may be flattening out," said Ron Planting, manager, information and analysis for the American Petroleum Institute. "However, U.S. oil demand is still significantly below where it was a year ago."

Read more on API's monthly statistics report.