PIRA Energy Group has reported that there was the largest Q2 stock build in the last 10 years this year. When it comes to the US, there was a modest stock build on the week.
Worldwide
- Commercial oil inventories in the three major OECD markets increased in the second quarter of this year.
- Weak economic activity has undermined oil demand and has forced supplies into inventory.
- High inventories have undercut confidence in oil price forecasts from PIRA.
- Front month WTI remains well supported relative to further out contracts by extraordinary low inventories and strong September refinery demand.
USA
- Overall commercial inventories increased.
- Stocks remained relatively flat to last year’s level.
- Inventories for the four major oil products are 22 million bbls below last year.
- Crude is 6 million bbls higher than last year.
- Week ending August 8, most US ethanol prices rebounded.
- Manufacturing margins for ethanol declined slightly as the lower average price for ethanol and co product DDG outweighed the fall in corn costs.
- Ethanol blended gasoline production hit a seven week high of 8.902 million bpd for week ending 8 August.
- The increase in ethanol demand was countered by an 11 week inventory low of 17.8 million bbls.
- There are no lingering effects from the harsh winter with considerable production gains in the Bakken, Eagle Ford, Niobrara and Permian basins.
Adapted from press release by Claira Lloyd
