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.
Adapted from a press release by Claira Lloyd.