PIRA oil market recap: Week ending 22nd September 2013

PIRA Energy Group has reported that US crude stocks declined year on year. On the week, US commercial inventories declined, while Japanese stocks rose

USA

• Commercial inventories declined for the week ending September 13^th led by lower crude inventories and lower gasoline and distillate.
• US commercial stocks are 12.7 million bbls above last year.
• Above figure down sharply from last week due to stock draw.
• The excess continues to be largely in gasoline.
• Distillates are nearly flat and remain quite low relative to history.

Japan

• Kerosene stocks started to rebuild as demand eased back.
• Refinery margins remain poor with gasoline cracks being the biggest drag.
• Fuel oil cracks are also very weak.

Ethanol

• US ethanol values plunged for the week ending 13^th September as the corn harvest has begun and prices have fallen, lowering the cost to manufacture the fuel.
• The supply/demand balance has also moved to a surplus.
• Week ending 13^th September, US ethanol production fell to 838 000 bpd.
• Output is expected to increase soon as the  harvest begins in the Midwest and plants restart. 

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/24092013/pira_eg_recap_22nd_september688/