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.
- 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.
- 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.
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