Oil market recap: week ending 28 December 2014

PIRA Energy Group has said that the oil price decline is a significant economic stimulus and not a deflation trigger. In the US commercial stocks increased on the week while in Japan there was little holiday uplift to gasoline demand and runs continued to rise.

USA

• Commercial oil inventories stood at 76 million bbls, 7.1% levels for the same period in 2013.
• Stock levels were the highest ever recorded for this particular week.
• Ethanol stocks remained near a nine week high, dropping by just 44 000 bbls to 17.6 million bbls.
• Ethanol prices nosedived during December, but remained significantly above gasoline values.
• Manufacturing margins for ethanol were also pressured by high inventories and rising corn costs.

Japan

• Crude runs were higher on the week with lower crude imports such that stocks drew.
• Gasoline demand was surprisingly weaker despite the Emperor’s holiday, however stocks still posted a draw and were nearing mid August record lows.
• Gasoline demand was slightly lower, but yield fell and exports rose such that socks drew slightly.
• Kerosene demand eased with higher yield and the stock draw rate moderated from the strong draws seen in the previous week.
• Refining margins were higher as all the major product cracks firmed.

Read the article online at: https://www.hydrocarbonengineering.com/refining/05012015/oil-market-recap-week-end-24-dec/