Oil market recap: Week ending 29th December 2013

PIRA Energy Group has said that the world’s economy seems to be set for faster growth. Also, there has been a large stock decline in the US whilst in Japan, crude stocks have been drawn strongly.

Global economy

• Current low oil inventories and stock declines are supporting strong prices.
• Key light product inventories are low, and distillates are vulnerable to a spike in cold weather.

USA

• Oil inventories fell, bringing the total decline to over 70 million bbls over the preceding nine weeks.
• Oil inventories are now 3.6% below the previous year’s levels and there are stock deficits in all major categories.

Japan

• Crude stocks declined following another big drop in implied crude imports.
• All the product demands rose on the week.
• Gasoline demand was pushed higher by the Emperor’s birthday holiday but gasoil demand was also strong.
• Kerosene demand was strong as the winter weather grew stronger.

Pipelines

• Canada’s National Energy Board’s Joint Review Panel gave conditional approval to the Northern gateway pipeline.
• The pipeline will carry 525 million bpd of oilsands bitumen from Alberta to Kitimat, British Columbia for shipment to Asia.
• The project is expected to cost CAN$ 7.9 billion.

Adapted from press release by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/02012014/29th_dec_pira_recap/