Skip to main content

Oil market recap: week ending 12 October 2014

Hydrocarbon Engineering,

PIRA Energy Group has said that in the US there has been a large crude stock build, a small product stock draw and widening commercial stock excess. In Japan, crude stocks have built in spite of higher runs.


  • PIRA has restructured its gasoline balances because of the steep decline in volume and the relevance of finished gasoline stocks and imports.
  • There have also been changes to the EIA’s finished balance due to a decline in MTBE and a rise in ethanol.
  • PIRA has complied a total gasoline balance, as well as one that separates the major sources of gasoline supply, namely refinery output, ethanol input, and total gasoline imports.
  • The EIA’s refinery and blender production of gasoline is a combination of refinery production, imported blending components and ethanol.


  • Crude stocks have built over the last week, but less than the build for the same week in 2013. This means that the crude stock deficit has increased.
  • The four major refined products built, whilst they drew in the same week last year. The deficit for this group has now narrowed.
  • In total, crude and the four major refined products are in deficit of – 17.8 million bbls.
  • All other product inventories drew less than 2013 draws for the same week.
  • Cash margins for ethanol manufacture declined for the seventh consecutive week.
  • Production of ethanol rebounded to 901 000 bpd for the week ending 3 October from a three month low.


  • Crude stocks built due to a rise in crude runs and import levels.
  • Finished product stocks rose slightly.
  • Gasoline demand was slightly lower last week than the previous week and stocks built slightly.
  • Gasoil demand was strong and resulted in a drawdown on stocks.
  • Kerosene demand was strong for the week and yield declined.
  • Refining margins remained soft with all the major product cracks weakening modestly.


  • LPG prices fell by 10% and above in the week ending October 12 due to broader energy and financial market weakness.
  • US stocks continued to build to further record highs.
  • Strong price competition by naphtha in Asia has led to subdued petrochemical purchasing.
  • An unplanned cracker upset in the Netherlands has left the NEW butane market long.

Edited from press release by Claira Lloyd

Read the article online at:


Embed article link: (copy the HTML code below):