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Oil market recap: Week ending 14 December 2014

Hydrocarbon Engineering,


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.

Edited from press release by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/17122014/oil-market-recap-17-dec/


 

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