Oil market recap: Week ending 14 December 2014
PIRA Energy Group has said that the creeping stock surplus is continuing. In the US, overall commercial stocks increased last week with a build in both products and crude. In Japan, crude runs and imports are higher and crude stocks built marginally.
Worldwide
- Saudi Arabia is relinquishing its role as oil price anchor and this has caused a decline in the demand for inventory which has resulted in oil prices collapsing.
- Recent LPG gains on naphtha in Europe and Asia come at the expense of less attractive petrochemical feedstock margins.
OECD
- Commercial oil inventories for the three major OECD markets for November drew 23 million bbls compared to 37 million bbls a year earlier.
- The three main OECD markets are the US, Europe and Japan.
- Commercial stocks in these markets began the fourth quarter at 22 million bbls higher than a year earlier.
- The balance of supply is outpacing growth demand by over 1 million bpd, and is expected to increase in 2015.
USA
- Commercial stocks built last week with the build in both products and crude.
- The Thanksgiving week was underreported, and distorted the stock exchange.
- Ethanol production soared to a record 988 000 bpd for the week ending 5 December.
- Stocks built by 461 000 bbls to a seven week high.
Japan
- Crude runs were marginally higher on the week.
- Crude imports were higher and crude stocks built fractionally.
- Finished product stocks drew due to draws in all the products but jet.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/17122014/oil-market-recap-17-dec/
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