PIRA Energy Group has reported that US crude stocks declined year on year. On the week, US commercial inventories declined, while Japanese stocks rose
- Commercial inventories declined for the week ending September 13th 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.
- 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.
- US ethanol values plunged for the week ending 13th 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 13th 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.
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