PIRA Energy Group has said that as both the physical market and financial length bottoming, oil prices are at or near their lows. In the US, PIRA has seen a sharp crude stock reduction be offset by a product build, while in Japan crude stock have posted a large draw.
- Tightness in LPG supplies in Europe has prices bid up this week.
- European supplies of LPG have tightened considerably on lower export volumes out of Russia and refinery maintenance in the UK and Antwerp.
- Russian maintenance at gas processing plants has lowered prompt Russian output.
- Concerns about potential further sanctions on Russia will support oil industry prices next week.
- Despite typhoon Neoguri, runs posted a sizeable gain, imports dropped and crude stocks drew.
- Product balances for gasoline and gasoil were little changed.
- Kerosene stocks resumed building.
- Both gasoline and naphtha stocks drew to record lows.
- Refining margins remained good with cracks little changed.
- For the week ending 11 July, crude stocks fell and product inventories built which lead to an overall inventory build.
- Crude oil and other products are up on last year while the four major product inventories are down.
- Ethanol prices showed some strength early in the week ending 11July, but resumed their descent due to rising inventories.
- Ethanol manufacturing cash margins improved for the second week running.
- US ethanol output hit 943 000 bpd up from 927 000 bpd for the week ending 4 July.
- Ethanol inventories declined by 341 000 bbls to hit a four week low of 17.9 million bbls.
Adapted by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/23072014/20-july-oil-recap/