PIRA Energy Group has reported that Cushing crude stocks hit record highs, but big draws are on the way. In the US, stock excess marginally narrows.
- Crude prices rebounded in April, as rig counts continued to drop and shale production appeared to be levelling off.
- Cushing stocks rose but Canadian stocks dropped, as the flood of exports to the south continued.
- Stocks at Cushing have likely peaked.
- The lowest crude and product imports of the year could not manage to substantially change the week on week stock build because reported demand fell sharply to the weakest level of the year.
- The overall inventory build was marginally lower than what occurred last year in the same week.
- The obvious noteworthy feature of the data was the first crude stock draw of the year.
- Gasoline and distillate stocks remain above last year, while the crude excess narrowed.
- Ethanol prices advanced during April boosted by lower supply as many plants were shut down for spring maintenance.
- Higher petroleum values also provided support.
- Ethanol production plummeted.
- Only 35 000 bbls were drawn from ethanol inventories, which remained at 20.8 million bbls.
- Asian LPG markets followed the rest of the world lower with the June Propane Far East Index losing US$19 on the week.
- Butane for June delivery was assessed at a US$20 premium to C3.
- Regional LPG prices are becoming increasingly attractive to the petrochemical sector.
Edited from press release by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/refining/12052015/oil-market-recap/