Oil market recap: week ending 15 March 2015

PIRA Energy Group has said that oil balances remain in surplus with pressure peaking in April/May. When it comes to the US, last week’s data was impacted by fog and this week marine traffic has been halted. In Japan, crude runs continue to ease but crude stocks were lower.

Asia Pacific

• Oil balances remain in surplus with pressure peaking in April/May from rising crude stocks.
• Product stocks are more balanced but a growing overhand will unfold.
• The adjustment process to clear the Atlantic Basin crude surplus has been slow to unfold.
• Middle East producers remain keen to maintain Asian market share.

Japan

• Crude runs eased as maintenance gathered steam.
• Crude stocks drew on a low import figures, while finished product stock built.
• All the major products built stocks slightly.
• The indicative refining margin remained strong.
• Gasoline and gasoil cracks firmed, thus offsetting declines in the fuel oil, naphtha and jet fuel cracks.

USA

• Last week’s data was impacted by fog.
• This week marine traffic has been halted in the Houston Ship Channel due to a collision between a chemical tanker and a bulk carrier.
• Distillate demand has been weaker than generally expected.

Latin America

• Light product imports will level off this year.
• New and returning refinery capacity in Brazil, Colombia and Ecuador will boost refinery runs covering demand growth.
• Net gasoline and diesel imports in those three countries will decline in 2015.

Read the article online at: https://www.hydrocarbonengineering.com/refining/17032015/oil-market-15-march/