Oil market recap: week ending 10 August 2014

PIRA Energy Group has reported that in the US there was the largest weekly stock draw since January 2014. Also in Japan, crude runs and socks increased.

USA

• For the first time since 2008, crude oil at Cushing dropped below 20 million bbls in July.
• Most crude grades weakened relative to WTI.
• The LLS premium strengthened as Gulf Coast crude stocks dropped due to higher refinery runs.
• Over the past week overall US commercial oil inventories fell.
• Crude stocks have fallen for six consecutive weeks.
• A large product inventory decline has been supported by the strongest reported demand of the year.
• Total inventories are now back below 2013 levels by 1.3 million bbls.
• Ethanol prices fell sharply the week ending 1 August due to the DOE’ supply report showing that inventories had risen to a 16 month high the week before.
• Due to the peak, ethanol manufacturing levels were lowered slightly.
• The LPG complex remained strong despite falling energy prices the world over.
• There is a crude surplus in the Atlantic Basin

Saudi Arabia

• Saudi Arabia has just released its formula prices for September.
• Prices to the US have been cut against the ASCI benchmark across the board following two months of record highs.
• Pricing to Europe and the Mediterranean against the Bwave benchmark was increased.
• Terms were made more generous in Asia.

Japan

• Refinery runs have continued to climb due to declining maintenance activity.
• Imports of crude increased and crude stocks posted a modest build.
• Finished product stocks have increased, slightly.
• Gasoline demand has fallen but lower yields meant a small stock draw.
• Refining margins remain quite weak with the gasoline crack posting another sharp decline.

Adapted from press release by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/12082014/pira-market-recap-week-end-10-aug/