PIRA Energy Group has said that US crude stocks drew over the past week while products build and in Japan crude stocks built as well.
North America
- Differentials generally weakened in June with crude bottlenecks reappearing in Canada and West Texas.
- Midcontinent markets are experiencing relative weakness due to rising production, refinery maintenance and pipeline delays.
- Commercial inventories increased this past week with product inventory increase outpacing a crude stock decline.
- US LPG prices remained strong despite the large fall in crude oil prices.
- Propane prices have been supported by increased export capacity and a bumper corn crop.
- Butane prices have been flat however, winter gasoline blending season is only a few months away, the high demand period for butane.
- The second half of the year began with ethanol prices in the US rising in most of the country and corn costs dropping.
- Ethanol manufacturing margins increased for the first time in five weeks.
- US ethanol output declined to a six week low of 927 000 bpd during the independence day holiday week.
Japan
- Crude runs were little changed, but a higher import rate built stocks to 3.9 million bbls.
- Finished product stocks built slightly.
- Gasoline stocks drew to a record low.
- Refining margins were good.
- Gasoline cracks gained on the week and other cracks eased slightly.
- The impact of typhoon Neoguri will not be seen for another week.
Adapted for web by Claira Lloyd
