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Oil market recap: week ending 1st June

Hydrocarbon Engineering,


PIRA Energy Group has reported that US demand growth was only 0.3% in the last week. On the week, US stock deficient widens in spite of commercial stock build. When it comes to Japan, PIRA reported that crude runs eased with continuing low crude imports.

USA

  • Official US Department of Energy (DOE) data has revealed that oil demand for March was 18.53 million bpd.
  • US DOE data has also revealed that total crude stocks for the month can in 7.6 million bbls lower than PIRA had assumed.
  • Total US commercial stocks build for the week ending May 23rd, however three major light products drew.
  • A sure in imports drove crude stocks higher, and all other oils built collectively.
  • US ethanol blended gasoline manufacture hit a record high of 8980 bpd for the week ending 23rd May.
  • US ethanol inventories increased by 499 000 bbls to an annual high of 17.5 million bbls.
  • Ethanol prices increased in May as consumption in gasoline soared to a record high.

Japan

  • Crude runs in Japan eased with continuing low crude imports such that stocks posted a moderate draw.
  • Demands were only slightly changed, with a small stock build in gasoline, a small draw in Kerosene and larger draws on fuel oil, gasoil and naphtha.

LPG

  • Stronger demand and favourable arbitrage economics for LPG exports will be counteracted by even increasing US LPG inventories.
  • Lower demand in Europe will keep LPG prices within range.
  • Saudi loading delays, higher contract prices and less spot Middle East volumes will be supportive for prices in Asia.

Adapted from press release by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/04062014/1st_june_ending_pira_report/


 

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