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Oil market recap: week ending 13 July 2014

Hydrocarbon Engineering,


PIRA Energy Group has said that US crude stocks drew over the past week while products build and in Japan crude stocks built as well.

North America

  • Differentials generally weakened in June with crude bottlenecks reappearing in Canada and West Texas.
  • Midcontinent markets are experiencing relative weakness due to rising production, refinery maintenance and pipeline delays.
  • Commercial inventories increased this past week with product inventory increase outpacing a crude stock decline.
  • US LPG prices remained strong despite the large fall in crude oil prices.
  • Propane prices have been supported by increased export capacity and a bumper corn crop.
  • Butane prices have been flat however, winter gasoline blending season is only a few months away, the high demand period for butane.
  • The second half of the year began with ethanol prices in the US rising in most of the country and corn costs dropping.
  • Ethanol manufacturing margins increased for the first time in five weeks.
  • US ethanol output declined to a six week low of 927 000 bpd during the independence day holiday week.

Japan

  • Crude runs were little changed, but a higher import rate built stocks to 3.9 million bbls.
  • Finished product stocks built slightly.
  • Gasoline stocks drew to a record low.
  • Refining margins were good.
  • Gasoline cracks gained on the week and other cracks eased slightly.
  • The impact of typhoon Neoguri will not be seen for another week.

Adapted for web by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/16072014/oil_market_recap_13th_july/


 

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