U.S. domestic petroleum deliveries—a measure of demand—plunged 5.8 percent for the first half of 2009, as the sluggish economy continued to stifle oil consumption, the American Petroleum Institute reported in its latest Monthly Statistical Report.

At 18.75 million bpd, oil deliveries for the January-to-June period were at their lowest level in more than a decade, and dropped nearly 10 percent from the peak of 20.75 million bpd reached in the first-half of 2005.

"The economic slowdown has had a particularly large impact on diesel and on jet fuel, though gasoline remains depressed, as well," said API Statistics Manager Ron Planting.

The Organization of Petroleum Exporting Countries projects world oil consumption will shrink 1.6 million bpd this year before returning to positive growth next year.

In its July oil market report released July 14, the cartel reaffirmed its June view of world demand at 83.8 million bpd for 2009 and forecast global oil demand growing by 500,000 bpd in 2010.

The rebound in growth next year will largely be shouldered by developing countries, especially the high-growth Asian countries, OPEC said in its latest Monthly Oil Market Report.