PIRA Energy Group has reported that US crude stocks declined year on year. On the week, US commercial inventories declined, while Japanese stocks rose

USA

  • Commercial inventories declined for the week ending September 13th led by lower crude inventories and lower gasoline and distillate.
  • US commercial stocks are 12.7 million bbls above last year.
  • Above figure down sharply from last week due to stock draw.
  • The excess continues to be largely in gasoline.
  • Distillates are nearly flat and remain quite low relative to history.

Japan

  • Kerosene stocks started to rebuild as demand eased back.
  • Refinery margins remain poor with gasoline cracks being the biggest drag.
  • Fuel oil cracks are also very weak.

Ethanol

  • US ethanol values plunged for the week ending 13th September as the corn harvest has begun and prices have fallen, lowering the cost to manufacture the fuel.
  • The supply/demand balance has also moved to a surplus.
  • Week ending 13th September, US ethanol production fell to 838 000 bpd.
  • Output is expected to increase soon as the  harvest begins in the Midwest and plants restart. 
Adapted from a press release by Claira Lloyd.