U.S. demand for crude oil fell to its lowest level since 2003 last year as record-high prices at the beginning of 2008 and a weakening economy in the second half of the year combined to sharply reduce consumption, according to a report released Thursday by an industry trade association. For all of 2008, U.S. oil deliveries—a measure of demand—fell 6 percent to 19.4 million barrels per day (bpd), with declines for all major products made from crude oil, the American Petroleum Institute (API) said. Jet-fuel deliveries fell 6.1 percent, distillate deliveries—including diesel—fell 5.8 percent, and gasoline deliveries fell 3.3 percent, the lowest level in five years, API said. High gasoline prices last summer—above $4 per gallon (3.8 liters) at some points—helped reduce demand for oil. From November 2007 to October 2008, Americans drove 160 billion fewer kilometers than the previous year, according to government data. “The magnitude of the drop in U.S. petroleum demand … was enough to offset the continued demand gains in developing countries around the world,” said API statistics manager Ron Planting. U.S. crude production last year fell below 5 million bpd for the first time since 1946, largely due to lower Alaskan output and disruptions caused by Hurricanes Gustav and Ike in the Gulf of Mexico. The two storms closed virtually all oil and natural-gas production in the gulf for two weeks in September. According to API, Alaskan production fell 1.1 percent in 2008, while Gustav and Ike contributed to a 0.6 percent decline in annual crude output from the mainland United States. U.S. import levels also reflected weakening demand, as petroleum imports fell to 12.9 million bpd, the lowest level in five years. Gasoline refining fell 2 percent to 8.8 million bpd, while refining of ultra-low sulfur diesel jumped more than 10 percent to 3.1 million bpd to meet growing demand, API said. U.S. refineries used about 84.9 percent of their full capacity last year, down about 4 percent from 2007, API said. Many refiners reduced gasoline production in the second half of last year as Americans drove less and demand fell sharply.