On Friday 11th October, US crude oil refiner stocks surged after the release by the IEA of the October Oil Market Report. In September, US refinery throughput led the IEA to increase its forecast of global refinery production by 100 000 bpd to 77.3 million bpd. Throughput rose by 1.2 million bpd year on year despite a drop of 700 000 bpd at European refineries.
Exports of refined products such as gasoline and diesel from the US reached 3.37 million bpd in the first week of this month, more than 500 000 bpd more than in the same week year on year. This is 900 000 bpd more than the same week in 2011.
A strong position
Refiners are benefitting from a very strong position with regards to the price they are paying for domestic crude, and this is attributed to the booming crude production from the Bakken play in North Dakota and the Eagle Ford and Permian Basin plays in Texas. Even including transportation costs, refiners are paying an amount that meets or even beats the price of imported Brent by enough to enable shipping of the refined products to Europe and still make a profit.
It is thought that refiners will maintain the upper hand in oil business and barring some unexpected event will hold the upper hand for the rest of this year and into next year.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/14102013/us_refiners_boost_supply745/