The Surging Demand for U.S. Oil in July: What You Need to Know
NEW YORK (Reuters) -U.S. oil demand reached its highest seasonal level since 2019 in July, signaling a positive trend for the industry. Despite economic pressures, U.S. oil consumption rose by 1.2% from June to 20.48 million barrels per day, the highest level for that month in two years. Both gasoline and ultra-low sulfur diesel demand also hit their highest levels since 2019, while jet fuel demand surged to the highest in any month since August 2019.
On the other hand, U.S. oil production experienced a slight decline for the second time in three months. Total production fell by 25,000 bpd to 13.205 million bpd in July. This decline, especially in key regions like Texas and North Dakota, has raised concerns among analysts and investors about the impact on oil prices.
Despite these challenges, there are bright spots in the industry. New Mexico, the second-largest oil producer, saw a record output of 2.04 million bpd in July. Additionally, gas production in the U.S. Lower 48 states reached a five-month high of 116.7 billion cubic feet per day, showing positive momentum in the sector.
Overall, the data reflects a complex landscape for the U.S. oil and gas industry, with both challenges and opportunities. Understanding these trends is crucial for investors and consumers alike, as they navigate the impacts on their finances and daily lives.
