US oil, gas demand rise while output falls in May

US oil demand surged to a seasonal record in May, with total crude oil and petroleum product supplied reaching 20.80 million barrels per day (bpd), a 792,000 bpd increase from April and the highest for May since records began.

This surge reflects a strong rebound in gasoline consumption, which hit 9.40 million bpd, the highest since August 2019. This increase in gasoline demand is typical for the summer driving season.

In contrast, US crude oil production fell by 61,000 bpd to 13.18 million bpd in May, marking the first decline since January. Natural gas output also decreased to its lowest level since February 2023, dropping to 113.8 billion cubic feet per day (bcfd).

This decline is the first three-month consecutive drop since October 2020. Despite these reductions, Texas and Pennsylvania set new production records, with Texas reaching 35.1 bcfd and Pennsylvania achieving a three-month high of 19.5 bcfd.

Attribution: Reuters