PIRA Energy Group has said that the positive impact of lower oil prices on global economic growth is beginning to be seen but oil markets remain oversupplied. In the US, oil inventories built over the past week and in Japan, turnarounds have geared up, but crude and product stocks have drawn.
- The positive impact of lower oil prices on global economic growth is beginning to be seen.
- Oil markets remain oversupplied with a 2 million bpd surplus in Q2.
- New price lows for Brent are unlikely and WTI is not expected to go below US$40/bbl.
- Both prices are anchored by the back of the market and available storage capacity.
- The magic of price is working to tighten oil markets but is taking time.
- Gasoline season looks healthy but new refinery capacity will pressure distillate.
- Political uncertainties are on the rise with this weekend’s Nigerian elections, Saudi Arabia’s direct military involvement in Yemen, and turmoil in Libya.
- Oil inventories built this past week.
- March stock hit nearly 1 million bpd.
- Inventories are 164 million bbls, or nearly 16% higher than last year.
- Over half of US excess is in crude oil.
- Propane inventories increased by 638 000 bbls.
- Ethanol prices declined at the beginning of the week ending March 20.
- Output of ethanol blended gasoline rose to a 12 week high.
- Crude runs eased once more as maintenance continued to pick up pace.
- Crude stocks drew to a record low on a low import figure.
- Finished product stocks drew on higher demands and lower runs.
- The indicative refining margin remained strong.
- Canada imported 318 million gal. of ethanol last year.
- PEMEX awarded contracts for the supply of up to 32.5 million gal./y from locally sourced sugarcane and sorghum.
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