Oil market recap: Week ending 26 July 2015

PIRA Energy Group has said that overall commercial stocks built but the excess modestly narrowed. In Japan, crude runs fell due to typhoons and crude stocks drew on low imports.

USA

• Overall commercial stocks built by 2.9 million bbls.
• The crude stock surplus to last year widened to 93 million bbls.
• Cushing crude stocks are 39 million bbls over last year, a new high for the year.
• US ethanol prices dropped to the lowest level in almost a month during the week ending 17 July.
• Ethanol production fell for the second consecutive week as some plants have been operating at lower rates due to poor margins.
• Inventories dropped by 181 000 bbls to 19.6 million bbls.

Japan

• Crude runs fell due to typhoon impacts, which also kept crude imports very low such that crude stocks posted a large draw.
• Finished product stocks rose due to a build in jet kero and fuel oil.
• Gasoline demand increased from holiday impacts and stocks drew.
• Gasoil demand was also higher, producing a modest stock draw.
• The indicative refining margin remained good and was little changed.

Read the article online at: https://www.hydrocarbonengineering.com/refining/28072015/oil-market-recap/