PIRA Energy Group has said that as both the physical market and financial length bottoming, oil prices are at or near their lows. In the US, PIRA has seen a sharp crude stock reduction be offset by a product build, while in Japan crude stock have posted a large draw.

Europe

  • Tightness in LPG supplies in Europe has prices bid up this week.
  • European supplies of LPG have tightened considerably on lower export volumes out of Russia and refinery maintenance in the UK and Antwerp.
  • Russian maintenance at gas processing plants has lowered prompt Russian output.
  • Concerns about potential further sanctions on Russia will support oil industry prices next week.

Japan

  • Despite typhoon Neoguri, runs posted a sizeable gain, imports dropped and crude stocks drew.
  • Product balances for gasoline and gasoil were little changed.
  • Kerosene stocks resumed building.
  • Both gasoline and naphtha stocks drew to record lows.
  • Refining margins remained good with cracks little changed.

USA

  • For the week ending 11 July, crude stocks fell and product inventories built which lead to an overall inventory build.
  • Crude oil and other products are up on last year while the four major product inventories are down.
  • Ethanol prices showed some strength early in the week ending 11July, but resumed their descent due to rising inventories.
  • Ethanol manufacturing cash margins improved for the second week running.
  • US ethanol output hit 943 000 bpd up from 927 000 bpd for the week ending 4 July.
  • Ethanol inventories declined by 341 000 bbls to hit a four week low of 17.9 million bbls.

Adapted by Claira Lloyd