Oil market recap: Week ending 31 August

PIRA Energy Group has said that oil inventories are higher and crude demand is lower. When it comes to the US PIRA has said that stock surplus to last year is roughly flat. Looking at Japan, crude stocks draw amid peak run rates.

Worldwide

• Oil inventories are higher and crude demand is lower.
• A combination of factors are pointing to lower prices including US oil supply growth and non-OPEC supply additions out pacing demand.
• If Russian gas flow to Europe stopped, oil demand could increase to 600 000 bpd.
• LPG prices in Asia held steady during the week.

USA

• There was a high level of crude unit downtime during August.
• The level of planned turnarounds and other outages carrying over from August is expected to increase over the next couple of months.
• Ethanol blended gasoline manufacturing rose to 8904 bpd the week ending August 22.
• Ethanol output levels dropped to 913 000 bpd, the second lowest level since April.
• Ethanol prices rose in August following a fall over the past quarter.
• The market for ethanol tightened as stocks drew by the largest amount since March last year.

Japan

• Runs have risen frantically on the week and lower crude imports have led to a crude stock draw.
• Finished products have continued to rise amid peak runs.
• Gasoline demand was at a higher level but is still performing below expectations.
• Gasoil demand has rebounded.
• Kerosene stocks have continued to build along with expected levels.
• Product cracks have improved across the board.

Edited from press release by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/03092014/oil-market-recap-3-sept-14/