United States World's Top Oil Producer But Still Imports More Oil Then It Exports

The United States continues to solidify its position as the world's top oil producer, even as domestic crude oil inventories posted a significant decline last week.

According to the latest Weekly Petroleum Status Report, U.S. commercial crude oil inventories fell by 8.3 million barrels during the week ending June 12, leaving stockpiles at 418.2 million barrels—about six percent below the five-year average for this time of year.

The inventory draw came as refineries ramped up operations. U.S. refiners processed an average of 17.2 million barrels of crude oil per day, up 230,000 barrels per day from the previous week, while operating at nearly 97 percent of capacity.

Despite producing more crude oil than any other nation in the world, the United States remains heavily involved in global energy trade. Last week, the country imported an average of 5.1 million barrels of crude oil per day, while exporting about 4.3 million barrels per day to overseas markets. The drop in imports, combined with strong refinery demand, helped reduce domestic oil inventories.

Gasoline inventories declined by 900,000 barrels during the week, while diesel and other distillate fuel inventories increased by one million barrels. Total commercial petroleum inventories fell by 7.9 million barrels.

Meanwhile, fuel demand remained strong. Total petroleum products supplied over the past four weeks averaged 20.6 million barrels per day, up 3.3 percent from the same period a year ago, suggesting continued strength in transportation and industrial energy use.

AAA reports the average price of gasoline in the United States is currently $3.91 per gallon down 8 cents in the last week. In Montana the average price is $3.99 per gallon and that is down 18 cents in the last week. The average price in Valley County is $3.79 per gallon.