PIRA Energy Group has said that the current global setting is conductive to growth and expects a springtime rebound in economic activity. In the US, stock excess is flat and in Japan, crude stocks have drawn.
- PIRA judges the current global setting as conductive to growth.
- The magic of price is working on both oil supply and demand; balances are tightening.
- The tightening is occurring at the same time as Middle Eastern sectarian conflict.
- The past week’s inventory build matches last year’s for the same week.
- Stocks are at 167 million bbls, or 15.5% higher than last year.
- Overall composition of the build did not change relative to lat year.
- Products are 75 million bbls higher while crude is 92 million bbls higher than last year.
- 61% of product excess is thought to be NGLs.
- Ethanol production dropped to a six month low.
- Ethanol prices climbed during April.
- Manufacturing margins improved as corn costs fell.
- Crude runs eased slightly and crude imports declined.
- Finished product stocks built mostly on a rise in naphtha stocks.
- Gasoline and gasoil demands were lower.
- Kerosene stocks drew fractionally.
- The indicative refining margin remains good and was little changed on the week.
- LPG prices were sharply lower.
- Cash cargo size for LPG lot prices lost 9% on the week.
- Butane prices were mixed, with coaster batch prices losing ground. Current LPG prices are now so attractive that petrochemical feedstock buyers will likely look to maximise runs in the coming weeks, wherever possible.
Read the article online at: https://www.hydrocarbonengineering.com/refining/05052015/oil-market-recap/