Oil market recap: week ending 22 June

PIRA Energy Group has reported that on the week, US crude stock draws widened commercial stock deficits. In Japan, crude runs dropped again but crude stocks built.

Iraq

• The Baiji refinery is likely to be idle for a prolonged period, requiring Iraq to import additional products.
• There is capability to import products at the southern port of Basrah, but deliveries by truck from neighbouring countries will also be needed.
• If all of Baiji’s light product production needed to be replaced, imports would need to increase by an additional 120 000 bpd.
• Northern Iraqi exports are unlikely to return soon but the 2.6 million bpd of current southern exports remain relatively well protected.

Japan

• Crude runs dropped another 65 000 bpd.
• Crude imports dropped but crude stocks built for a third week.
• Finished products drew slightly.
• Refining margins were slightly softer this week with margins remaining near statistical lows despite ongoing refinery downtime.

USA

• Total commercial stocks built the week ending June 13, but crude oil stocks drew, contributing to the widening out of the total commercial stock deficit.
• The four major refined products built, compared with last year.
• Crude stocks are now approximately – 13 million bbls under their recent peak during late April.
• LPG prices rallied this week on a lower than expected inventory increase and higher crude prices.
• Ethanol prices declined the week ending June 13 due to growing production, building, inventories, and falling corn costs.
• Ethanol production hit a new record of 972 000 bpd for the week ending 13 June.
• Ethanol blended gasoline production neared the record with an increase from 8.798 million bpd to 8.931 million bpd.

Adapted from press release by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/25062014/oil_market_recap_25_june_2014/