Production of natural gas liquids in US hits record high in July

The United States set a record for the production of natural gas liquids (NGL) in July, producing 4.4 million barrels per day (mb/d), according to data from the American Petroleum Institute (API).

The United States also tied the record for crude oil production at 10.7 mb/d last month.

“With total U.S. liquid fuels production, up by more than 2.0 MBD year-over-year, the United States has been the world’s only substantive source of oil production growth so far in 2018 and more than compensated for production losses in some OPEC nations,” API Chief Economist Dean Foreman said. “As a result, domestic oil prices have remained lower than international ones which is good news for consumers.”

Additionally, demand for U.S. petroleum reached its highest level since 2007 in July at 20.6 mb/d. Demand growth in July stemmed primarily from residual fuel oil and kerosene jet fuel. The high demand for residual fuel oil may be due to an acceleration in marine shipping activity with escalating U.S. trade disputes, API said.

Further, U.S. petroleum net imports rose 450 thousand barrels per day in July, while U.S. petroleum inventories increased to above the median of the 5-year range.

“Historically, the more supply that has been brought to the market the better the chances have been for putting downward pressure on prices at the pump,” Foreman said.