Total petroleum deliveries for January, a measure of demand in the U.S., rose 0.8 percent, to 19.4 million barrels a day, the highest January levels since 2008, API said Friday.
"The industry also produced record amounts of gasoline for the month of January that more than met rising consumer demand," Erica Bowman, API's chief economist, said in a release. "Additionally, refineries found plenty of international buyers for excess production leading to a record-setting January export level."
Motor gasoline deliveries also recorded their best January since 2007. API also said crude oil production decrease 1.4 percent in January year over year, to average 9.2 million barrels per day.
Oil prices fell on Friday as talk of a plan by some producers to freeze output levels was tempered by continued concerns of an oversupplied market after a record build in U.S. crude inventories.
Investors also digested the latest Baker Hughes rig count data, which showed a drop of 26. U.S. oil rigs have now fallen for a ninth straight week, and now total 413. Baker Hughes also said rigs have fallen by 606 year over year.
Oil prices rose by more than 14 percent earlier in the week on Saudi Arabia and Russia's agreement to freeze output at January levels.
But while Iranian Oil Minister Bijan Zanganeh welcomed the plan, he fell short of committing to it and Iranian sources told Reuters that capping output is not enough to rebalance the market.
Saudi Arabia repeated that it had no plans to cut output and would continue to protect its market share.