PIRA Energy Group has said that midcontinent differentials have strengthened. Also, in the US, there has been the first large stock decline since early August and in Japan crude runs have declined with higher turnaround activity.
- The week saw a dramatic swing in product stocks from a week earlier contributing to a downward pull on commercial inventories.
- Last week saw the sharpest week to week decline in runs this year.
- The draws were contributed to by lower product imports to the US and stronger product demand.
- Crude oil stock decline added to the overall decline despite runs falling.
- Propane prices shrugged off crude oil and gasoline price weakness and rebounded strongly.
- Stronger demand for propane and a smaller stock build also moved prices higher.
- Butane prices went unchanged.
- Over the next week, US prices should find support in higher seasonal and agricultural demand and an end drawing to inventory increases.
- Ethanol production fell to a six month low last week as some plants underwent routine maintenance.
- Stocks were up 236 000 bbls to 18.8 million bbls of ethanol, the highest level seen since March 2013.
- Crude runs dropped as turnarounds increased.
- Crude imports rose which did build some crude stocks.
- Finished product stocks declined after having risen steadily since the middle of June.
- Gasoline and gasoil demands were slightly higher, with small stock draws on each.
- Kerosene demand lifted due to consumers restocking.
- Refining margins remained soft.
- Light product cracks were slightly weaker and fuel oil cracks firmed up.
Adapted from press release by Claira Lloyd
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