PIRA Energy Group has said that Brent crude prices will move higher after some first half of July weakness. In the US there have been crude stock draws and product stock builds while in Japan, crude runs have begun to rise and stocks draw.
- Brent crude prices are expected to move higher after some first half of July weakness.
- Urals differentials will form over the next two months.
- Gasoline cracks still have some strength for now but with ample inventories they will narrow next month.
- Distillate inventories, while rising at the moment, remain low and will tighten in the Atlantic Basin in the third quarter.
- Propane is well supplied in Europe as well as Asia.
- Crude runs have begun moving higher as turnarounds begin to wind down.
- Crude stocks drew marginally as imports remained low.
- Finished product stocks also drew slightly.
- Refining margins remain soft but they improved slightly due to improved light product cracks overcoming a weaker fuel oil crack.
- Stocks of LPG continue to rebuild from low levels at record rates.
- NGL production rates soared to a record high in April, with significantly more growth expected this year.
- New fractionation capacity and infrastructure is being rapidly deployed to meet surging oil production.
- Ethanol production rebounded to 953 000 bpd in the week ending June 28, up from 938 000 bpd during the preceding week.
- Last week’s ethanol production was significantly less than the 972 000 bpd record hit two weeks earlier.
Adapted for web by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/09072014/pira_oil_recap_878/