PIRA Energy Group has said that the global economy will expand at an above trend pace in the second half of this year. When it comes the US PIRA says that products have increased over the last week and crude stock has declined. When it comes to Japan, crude stocks have built as imports rebounded from storm impacts.
- After a below par first half, the global economy will expand at an above trend pace in the second half.
- The lead in the economy will be speared headed by manufacturing.
- Weaknesses in the economy in the first half of the year undermined global oil balances with inventories building back to year ago levels.
- The US crude inventory situation is quite tight while Europe is very long.
- The worst of the European prompt crude price weakness has most likely passed.
- The sharp decline in financial net length is supportive for nominal oil prices.
- US commercial oil inventories increased compared to last year’s decline for the same week.
- The product stock increase was roughly the same compared to the week earlier.
- Crude runs, product imports and reported demand did not change much.
- The inventory gap narrowed by 3.5 million bbls to 4 million bbls.
- LPG prices remained stable despite large increases in domestic inventories.
- The promise of increased exports is remaining on the sidelines for now.
- Butane prices were flat.
- High and rising inventories will contain prices while the prospect of higher exports and the nearing end of summer will be supportive for the US LPG prices next week.
- Chicago and Gulf Coast ethanol prices were stable the week ending 18 July.
- Values in Southern California rose while prices in New York fell for the above week.
- Ethanol manufacturing cash margins were down slightly.
- US ethanol production increased to 959 000 bpd for the week ending 18 July.
- Inventories of ethanol were relatively flat, declining by only 5000 bbls to a five week low of 17.9 million.
- Runs continued to rise as turnarounds wind down.
- Crude imports jumped higher following typhoon disruptions and crude stock built.
- Gasoline demand was only slightly higher, despite upcoming holiday and stocks built from record lows.
- Gasoline demand was higher with a big surge in exports such that stocks drew 1 million bbls.
- Kerosene demand remained low and stocks continued building.
Edited from source by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/gas-processing/30072014/pira-energy-market-recap-1041/