Oil market recap: week ending 2nd February

According to PIRA Energy Group, at the moment, low inventories are supporting oil prices. US product stocks have drawn while crude has built.

Worldwide

• Increasing momentum in the leading developed economies is providing a lift for emerging markets which may ease financial market pressure.
• Low inventories are supportive of oil prices at the moment.
• Political risks were balanced last month which has led PIRA to assume that disruptions remain high but will decline this year.

USA

• Over the past week, total commercial inventories decreased.
• A large build in crude in part, offset large draws in products.
• Last week, products drew even with higher crude runs and higher product imports.
• US propane storage is at a new low for the period.
• Ethanol prices and margins tumbled last month.
• RIN prices rose due to uncertainty in the timing of the EPA finalising the biofuel requirements for this year.

Japan

• Crude runs eased on the week.
• Finished products drew 1.5 million bbls but there was a decline in gasoline and gasoil.
• There were more substantial draws on jet/kero and fuel oil.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/05022014/pira_week_ending_2nd_feb140/