Domestic petroleum deliveries—a measure of demand, dropped 4.3 percent in May from a year ago as the economic downturn continued to take a toll on freight transportation and air travel, the American Petroleum Institute reported in its latest Monthly Statistical Report.

At 18.89 million bpd, oil deliveries for May were at their lowest level since 1999.

API reported that “with the string of year-over-year declines that has continued without interruption since mid-2007, January-May petroleum deliveries sank to a level fully 8.5 percent lower than for the same period four years ago, when they reached a high of 20.7 million bpd.”

The Tennessee legislature passed legislation that compels refiners and other fuel suppliers in the state to make available to wholesalers unblended gasoline and gasoline blending stock so they can blend it themselves with ethanol.

The legislation was passed by Tennessee’s House of Representatives on June 9 and Senate on June 12. The legislation awaits the signature of Gov. Phil Bredesen to become law, said Lee Harrell, a legislative aide for Speaker Pro Tempore of the Senate Jamie Woodson.

The bill also forces refiners and suppliers to make available to wholesalers diesel that is suitable for blending with biodiesel.