WASHINGTON, March 19, 2020 – The American Petroleum Institute today released its February 2020 Monthly Statistical Report, providing an early indication of the impact of the coronavirus pandemic on energy markets. Data from the report reflect the onset of the virus with downturns in demand for diesel (-9.9% y/y) and jet fuel (-5.2% y/y), but a slight increase in gasoline (+0.3% y/y), suggesting many consumers chose to drive instead of fly in February.
“February data reflect the onset of the coronavirus and serve as an early indicator of the impact this global pandemic has had on energy markets,” API Chief Economist Dean Foreman said. “The demand destruction resulting from the coronavirus combined with Saudi Arabia and Russia increasing supply has left global energy markets in unchartered territory.”
Since the coronavirus impact on U.S. markets has largely been felt in March, API’s next MSR will provide a clearer picture on changes to supply and demand.
Key takeaways from the February 2020 MSR include:
- Fuel substitution. Lower jet fuel and diesel deliveries in February were partially offset by increased gasoline demand as consumers appear to have driven instead of flown, likely due to concerns about the coronavirus (COVID-19). Consequently, U.S. gasoline demand rose in February to its highest for the month since 2007.
- Slow supply growth. U.S. crude oil production sustained its record 13.0 million barrels per day (mb/d) against a backdrop in which productivity and well completions (rather than drilling) shouldered the growth.
- Record U.S. crude oil exports (3.6 mb/d) contributed to strong total petroleum exports (9.2 mb/d) that made the U.S. a net exporter of oil in February.
- Closer domestic and international prices. The price difference between domestic West Texas Intermediate (WTI) and international Brent crude oil prices narrowed in February and likely responded to increased pipeline capacity that especially enabled Permian basin crude oil to go to market more efficiently.
API represents all segments of America’s oil and natural gas industry. Its more than 600 members produce, process, and distribute most of the nation’s energy. The industry supports 10.9 million U.S. jobs and is backed by a growing grassroots movement of millions of Americans. API was formed in 1919 as a standards-setting organization. In its first 100 years, API has developed more than 700 standards to enhance operational and environmental safety, efficiency and sustainability.