New York (Platts)--18Mar2009

Deliveries of oil products in the US, a key indicator of demand, fell by
3% in February, putting them at "the lowest for the month since 1999," the
American Petroleum Institute reported Wednesday.

API, in its monthly statistical report, noted that total product supplies
in the US last month were 19.193 million b/d, down from 19.782 million b/d a
year earlier.

The decline occurred despite a rise of 2% in gasoline demand, to 9.021
million b/d from 8.842 million b/d in February 2008. But API put the increase
in perspective, noting that the latest figure "was against below-trend
deliveries a year ago." But it added that the increase "may also have
reflected some easing, in response to lower gasoline prices, of earlier
consumer cutbacks."

While there was a glimmer of hope for refiners in the gasoline demand
figure, that was not the case for distillates. API reported February
distillate demand at 3.741 million b/d, a drop of 12% from the 4.251 million
b/d average last year. API said distillate demand fell, "as the business and
manufacturing sectors faltered."

Jet kerosene also was lower year-on-year, declining by 6.6% to 1.435
million b/d from 1.537 million b/d, according to API's data.

Residual fuel oil demand was sharply higher, up 36.4% to 753,000 b/d from
552,000 b/d, but API noted that the February 2008 figure was a "record low."

Reflecting the generally gloomy demand picture, refinery inputs in the US
fell by 2.9%, to 14.523 million b/d from 14.950 million b/d. The February
inputs were the lowest for that month since 2002, API said.
--Robert DiNardo, robert_dinardo@platts.com