PIRA Energy Group has said that the US economy is doing well, however people are still struggling. Also in the US, the stock excess has widened. In Japan PIRA has said that crude runs are rising but crude stocks have drawn.
- Global oil balances continue to confirm a rather large surplus this year.
- OPEC will find it hard to remedy the surplus situation.
- World trade has decelerated sharply, after growing at twice the rate of GDP in the past.
- The slowdown in world trade growth has impacted growth in bunker fuels and air freight.
- A report from the IMF and World Bank suggests that the trade slowdown is not temporary especially in China and the US.
- The fourth quarter stock profile continues to be relatively flat compared to the sharp decline last year, which reflects the ongoing global imbalance between supply and demand.
- An ethanol price rally gained momentum in the US for the week ending November 14 due to there being little availability.
- Many traders of ethanol were caught short as they had counted on values to decline due to the record corn harvest.
- The Environmental Protection Agency has said it will not finalise the 2014 biofuel requirements and percentage standards for the Renewable Fuel Standard program this year.
- The EPA is intending to take action on the 2014 standards rule in 2015 prior to or in conjunction with action on the 2015 standards rule.
- Crude runs jumped as turnarounds eased and crude imports stayed so low that crude stocks drew.
- Finished product stocks built 1.8 million bbls.
- Gasoline demand was disappointing, with higher incremental exports helping to limit the stock build.
- Gasoil demand rose slightly with a large drop in yield also limiting the stock build.
- Kerosene demand was stronger.
Edited from press release by Claira Lloyd
Read the article online at: https://www.hydrocarbonengineering.com/refining/25112014/oil-market-recap-week-end-23-nov/