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Oil market recap: Week ending 8th December

Hydrocarbon Engineering,


PIRA Energy Group has reported that the US is in a much tighter stock position than this time last year. Also, in Japan, low crude imports have drawn stocks.

USA

  • High crude stocks on the Gulf Coast led to further disconnect between US and foreign markets in November.
  • For the first time this year, US commercial oil inventories have fallen below last year.
  • Crude stocks are 14 billion bbls above last year.
  • Overall product stocks are 16 million bbls below 2012.
  • Petroleum product demand is running 8.5% higher than last year for the four week average.

Japan

  • Crude imports have moved lower resulting in a strong crude stock draw.
  • Gasoline and diesel demand eased back with minor stock changes for both.
  • Kerosene stocks have submitted a strong build rate.

Atlantic Basin

  • There have been more light product imports into Latin America and Africa due to stagnant refinery capacity.
  • The growth in crude production is likely to have a profound impact on the regional crude supply/demand balances.
  • Refinery runs in the Atlantic Basin area countries have declined in recent years after peaking in 2005 – 2007 but are expected to resume slow growth with the increases in the US and Latin America offsetting European declines.
  • Projected growth in crude production is much greater than the increase in refinery runs.
  • The above will most likely result in a large crude surplus in the region forcing foreign markets to be explored with particular focus on Asia. 

Adapted from a press release by Claira Lloyd.

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/10122013/8th_dec_oil_market_recap_pira905/


 

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