PIRA Energy Group has said that MAY WTI prices rose as Cushing crude stocks fell. In the US, commercial stocks have hit another new record level and in Japan, crude runs are continuing to fall with higher stocks.
Prices and stocks
- The rebound in crude prices continued in May, with WTI averaging approximately US$60/bbl.
- Crude balances remained tight in Canada and West Texas.
- Most price differentials were little changed.
- Total commercial stocks built a combined 7.4 million bbls.
- Demand fell approximately 1.1 million bpd.
- Total commercial stock level was at a new record high.
- Ethanol prices fell week ending May 29 due to higher production and lower corn values.
- The EPA’s bearish announcement of proposed biofuel mandates added to the decline.
- Ethanol production did continue to advance for the week ending May 29.
- Inventories of ethanol were essentially flat, declining by only 29 000 bbls.
- Crude runs dropped with a big reduction in the crude import rate.
- Finished product stocks rose mainly due to builds in naphtha and fuel oil.
- Gasoline stocks built slightly.
- Gasoil stocks drew.
- The indicative refining margin remained good.
- Efforts to have a non-OPEC/OPEC output cut were thwarted by Russia and its unwillingness to participate.
- Recent strength in oil prices has reduced pressure for the initiative over the last month.
- Gulf OPEC members see strong demand for crude and expect prices to strengthen to end year.
Read the article online at: https://www.hydrocarbonengineering.com/refining/09062015/oil-market-recap/