EIA: US oil demand for June was the lowest since 2020

The U.S. Energy Information Administration reported on Friday that U.S. oil use in June was at its lowest levels for the season since the 2020 coronavirus pandemic.

The EIA's proxy of demand, crude oil and petroleum product supply, dropped 2.7% from one month to the next, reaching 20,25 million barrels a day (bpd), in June. This is the lowest June level since 2020.

The sharp drop comes after consumption reached a seasonally high of 20,80 million bpd during May.

The EIA data also showed that distillate demand was at its lowest seasonal level since 2020. The consumption of distillate fuel oils, including diesel and heating oil fell by 4.9% in May to 3,59 million bpd.

EIA reported that the demand for gasoline fell by 1.7% in June to 9.12 millions bpd.

EIA data show that crude oil production increased by 25,000 barrels per day (bpd) from May to 13,21 million bpd for June. The EIA revised the May production upwards by 11,000 bpd compared to last month's numbers.

According to the EIA’s monthly 914 report, gross natural gas production in U.S. Lower48 states reached a four-month peak of 115.5 billion cubic feet per day (bcfd).

This was the first time that gas production rose two consecutive months since December 2023. The previous record monthly high, 118.2 Bcfd, also occurred in December 2023.

In the top gas producing states, the monthly output rose in June to a record of 35.5 Bcfd. This was a four-month-high.

This compares to a record monthly high of 21.9 billion cubic feet per day in Pennsylvania in December 2020. (Reporting from Shariq Khan in New York and Scott DiSavino; editing by Kiri Donovan).

(source: Reuters)