Oil market recap: Week ending 15th December

PIRA Energy Group have said that a large part of Libya’s potential return has been priced in to global oil markets. Also, the largest US crude stock draw of the year has pulled overall inventories lower.

Libya

• PIRA are unsure if Libya will restart exports on Sunday 22^nd December or if it will be another false start. But signs for a restart are more encouraging than on previous occasions.
• Oil markets have already priced in anticipation of a return.

USA

• Crude stock fell as refiners continued to run at summer peak levels to take advantage of margins.
• Domestic crude production was also reduced by the cold weather.
• The overall stock decline expanded the stock deficit to last year by over 10 million bbls.
• Propane storage is expected to end the year at well over 10 year lows.
• Propane stocks are being pulled lower by exports, modest petchem feed usage and the coldest weather in years.
• Ethane and butane are the preferred steam cracker feedstocks.
• International LPG markets are reportedly awaiting the arrival of imports from the US and West Africa.

Japan

• Runs have continued to rise post turnaround but crude imports have moved higher resulting in a strong crude stock build.
• Gasoline demand has remained strong and gasoline demand has grown to an extremely high level with a stock draw on both gasoline and gasoil.
• Refinery margins increased on the week.

Adapted from press release by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/17122013/pira_recap_15th_december/