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PIRA Energy Group oil market recap: Week ending 2nd September, 2013

Hydrocarbon Engineering,

PIRA Energy Group’s analysis of oil market fundamentals have revealed the following:

Oil prices

  • The industry is currently bullish about oil prices with the global economy gradually improving, tight physical oil markets and MENA turmoil, which is already substantially reducing global oil supplies and has the potential to reduce supplies further.
  • Deflationary headlines in September and the startup of Iranian nuclear negotiations are possible downside risks to oil prices.
  • The momentum to own oil will possibly keep prices higher for now.


  • Commercial oil inventories increased for the week ending 23rdAugust but product inventories declined.
  • Oil inventories are at the upper end of their historic range.
  • Crude, gasoline, distillate, jet and resid are at the average of their historic range.


  • Crude runs are little changed but stocks have been drawn upon strongly due to very little import movement.
  • Gasoline demand is remaining strong.

Oil trade

  • Crude oil trade flows have been significantly altered by the withdrawal of nearly half of Libya’s production from the market and the subsequent increase in production from Saudi Arabia to record levels.
  • Tanker markets are adjusting to more West African crude staying in the Atlantic Basin.
  • Adapted from a press release by Claira Lloyd.

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