PIRA Energy Group has reported that oil prices are strongly supported by tight oil supply and demand balances. It has also reported that Japanese crude stocks have jumped.
Global oil prices
- Oil prices were strongly supported by relatively tight oil market supply/demand balances that have lasted through the early part of 2014.
- As oil markets progress through the first quarter, supply/demand balances will soften and prices will likely weaken from today’s levels but the erosion should be limited in scope.
- OPEC and Saudi Arabia, in particular, have the means to limit declines as output remains in their comfort zone and can be adjusted a needed.
- The US has faced a massive stock draw led by crude oil.
- The past week’s inventory decline is the largest ever recorded for this particular week.
- Propane continues to see upward price moves as storage is pulled to record lows, particularly in the Midwest.
- Ethanol production plummeted to a 14 week low of 868 000 bpd.
- PADD II stocks of ethanol rose for the fifth consecutive week.
- Of note this week was a huge surge in crude stocks of 10.8 million bbls as crude imports rose from 3 million bpd to 5.5 million bpd.
- Finished product stocks drew 1.2 million bbls.
- Gasoline stocks built slightly, all other major products drew.
- Gasoil demand rebounded from abnormally low levels.
- Kerosene stock draws resumed after a one week increase.
Adapted from a press release by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/23012014/oil_market_recap_week_19th_jan96/