PIRA Energy: Weekly oil market recap

PIRA Energy Group has reported that old North American crude oil pipelines are not the reason for major pipeline spills. Also, a massive US product inventory decline has occurred whilst in Japan runs continue to rise with lower crude stocks.

USA

• 54% of major onshore crude oil pipelines in the US and Canada were built before 1970.
• For the 15 major crude oil spills over the past five years, only nine occurred in pipelines identified as built before 1970.
• For the week ending 15^th November, overall commercial oil product inventories in the US fell by the largest weekly decline in two years.
• Total commercial oil stocks were down for the fourth monthly decline in a row.
• Propane continues to outperform other components of the NGL complex.

Japan

• Both gasoline and gasoil demands were modestly higher than previously.
• Kerosene demand was strong and stocks resumed drawing.
• Refinery margins moved slightly higher.

Biofuels

• The EPA has proposed to reduce the total renewable fuel mandate for 2014 to 15.21 billion ethanol equivalent gal.
• US ethanol production remained over 900 000 bpd for the fourth consecutive week.
• Inventories of ethanol declined by 70 000 bbls.

Adapted from press release by Claira Lloyd

Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/26112013/weekly_oil_market_pira_24th_nov/