PIRA Energy Group has reported that in the US there was the largest weekly stock draw since January 2014. Also in Japan, crude runs and socks increased.
USA
- For the first time since 2008, crude oil at Cushing dropped below 20 million bbls in July.
- Most crude grades weakened relative to WTI.
- The LLS premium strengthened as Gulf Coast crude stocks dropped due to higher refinery runs.
- Over the past week overall US commercial oil inventories fell.
- Crude stocks have fallen for six consecutive weeks.
- A large product inventory decline has been supported by the strongest reported demand of the year.
- Total inventories are now back below 2013 levels by 1.3 million bbls.
- Ethanol prices fell sharply the week ending 1 August due to the DOE’ supply report showing that inventories had risen to a 16 month high the week before.
- Due to the peak, ethanol manufacturing levels were lowered slightly.
- The LPG complex remained strong despite falling energy prices the world over.
- There is a crude surplus in the Atlantic Basin
Saudi Arabia
- Saudi Arabia has just released its formula prices for September.
- Prices to the US have been cut against the ASCI benchmark across the board following two months of record highs.
- Pricing to Europe and the Mediterranean against the Bwave benchmark was increased.
- Terms were made more generous in Asia.
Japan
- Refinery runs have continued to climb due to declining maintenance activity.
- Imports of crude increased and crude stocks posted a modest build.
- Finished product stocks have increased, slightly.
- Gasoline demand has fallen but lower yields meant a small stock draw.
- Refining margins remain quite weak with the gasoline crack posting another sharp decline.
Adapted from press release by Claira Lloyd
