PIRA Energy Group has said that the global economy continues to improve. On the week the US stock decline moderated whilst in Japan, runs continued rising and key product demands become stronger.
- Global economy is continuing to improve, indicating relatively strong oil demand growth in 2014.
- Bearish supply is darkening the 2014 price outlook, but PIRA believes it will be limited and expects Saudi Arabia to balance the market.
- Weakness will be felt mostly in the first half of 2014 due to seasonal demand and crude inventory builds.
- Overall commercial inventories fell slightly.
- Crude stocks built as crude imports stayed high, especially from the Middle East.
- Product stocks drew as higher product supply and lower reported demand reduced the week on week product inventory decline.
- Propane stocks continue to draw at a rapid pace.
- Runs continued rising post turnaround but crude imports moved strongly higher and sticks built 3.1 million bbls.
- Gasoline and gasoil demand displayed decent gains and inventories of both drew.
- Refinery margins moved slightly higher once again.
- US ethanol inventories declined by 61 000 bbls to 15.02 million bbls.
- US ethanol prices and manufacturing margins skyrocketed to the highest level in two years.
Adapted from a press release by Claira Lloyd.
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