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Weekly Oil Market recap: 27th October

Hydrocarbon Engineering,

PIRA reports that Asian oil markets are fundamentally supportive but Atlantic basin imbalances still remain. Also, US crude stocks have built, but Japanese crude stocks have drawn slightly.


  • Crude oil prices have come under pressure once again.
  • Stock builds have been largest than anticipated because refinery runs have been lower as margin pressure has lasted longer.
  • Asian middle distillate cracks have held up relatively well and demand strength should continue to be supportive.
  • Crude markets in Europe are quite weak with a substantial overhang of North Sea barrels pressuring spreads, especially with the recent sharp increase in long haul freight.


  • US crude stocks built for the week ending 18th October.
  • Colder weather has arrived in the US and will help pull propane stocks yet lower.


  • Due to typhoons, Japanese runs dropped back further, but should soon start turning higher.
  • Implied crude imports stayed low and crude stocks drew slightly.
  • Gasoline demand was relatively strong.
  • Gasoil demand fell back, but was relatively strong, with lower yield that drew stocks.
  • Refinery margins remain soft.


  • US ethanol prices advanced during the week ending 18th October.
  • RINs stabilised after a raft EPA memo lowering the 2014 biofuels mandates sent values plummeting during the previous week.
  • Production soared 987 000 bpd in the US for the week ending 18th October.
  • Output was up 3.2% from 869 000 bpd in the preceding week.

Adapted from a press release by Claira Lloyd.

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