PIRA Energy Group has said it believes that Saudi Arabian production is going to increase. In the US, there has been another record crude and total commercial stock level. Over in Japan, crude runs are near seasonal maximums.
- It is becoming clear that production from Saudi Arabia is still rising.
- Production had been averaging 9.7 million bpd last year from June 2014.
- Likely additional demand has now most probably pushed output up to just under 10 million bpd.
- Total commercial stocks built last week to a new record high.
- The year to year surplus inched up by only 0.1 million bbls.
- The 1.4 million bpd year on year increase in commercial stocks has only been met by a 0.3 million bpd decline in imports.
- Ethanol production rebounded to 961 000 bpd the week ending February 6.
- Production of ethanol blended gasoline fell sharply.
- Crude runs increased slightly.
- Crude imports rebounded and stocks built last week.
- Finished product stocks drew with a pickup in gasoil, gasoline and kerosene demands.
- The indicative refining margin remained strong.
- Crude stock builds continue at a reduced pace and will give way to product stock builds.
- Global demand growth year on year is beginning to look better.
- The macroeconomic environment in Asia shows no large scale deterioration in performance that would lower PIRA’s 5.3% Asian GDP growth assumption for this year.
Read the article online at: https://www.hydrocarbonengineering.com/refining/18022015/oil-market-recap-15-feb/