PIRA Energy Group has reported that the Asian oil markets are still constructive. Also, on the week demand surge lessens US stock build and in Japan turnarounds build crude stocks.
- Crude oil stock draws have begun and will continue through September.
- Physical markets are now supported by relatively low stock levels and higher crude runs.
- Supply disruptions remain near record highs.
- In Japan, crude runs eased slightly while crude imports rose such that stocks built 1.9 million bbls.
- Japanese finished product stocks built to 1.6 million bbls due to builds in jet kero, gasoil and fuel oil.
- Finished Japanese product stocks have been rising steadily since mid March.
- Gasoil demand was exceedingly week in Japan, even post holiday.
- Refining margins in Japan were slightly higher but remain in the lower half of their statistical range.
- Overall commercial inventories increased, with nearly 1 million bbls of the build being in crude oil.
- This was the smallest stock increase in six weeks.
- Most of the deficit is in gasoline and distillate.
- US shale liquids growth continues to outpace the PIRA quarterly forecast, but only slightly.
- US ethanol prices bottomed early the week ending 9 May but rose sharply after the DOE reported that production and inventories both declined during the week ending May 2.
- US ethanol blended gasoline manufacture hit a record high of 8957 bpd the week ending May 9.
- Ethanol production rose to 922 000 bpd, the second highest output thus far in 2014.
- The developments in Ukraine increase the odds of greater investment in gas exports in the US and around the world in response to supply security concerns.
- US shale crude revolution is changing the dynamics of global crude and product trade, and there is now an active dialogue on whether to lift the ban on crude exports from the US.
Adapted from a press release by Claira Lloyd.
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/20052014/pira_week_ending_18_may557/