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Oil market recap: Week ending 29th December 2013

Hydrocarbon Engineering,

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.


  • 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.


  • 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.


  • 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

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