Oil market recap: Week ending 8th December

PIRA Energy Group has reported that the US is in a much tighter stock position than this time last year. Also, in Japan, low crude imports have drawn stocks.

USA

• High crude stocks on the Gulf Coast led to further disconnect between US and foreign markets in November.
• For the first time this year, US commercial oil inventories have fallen below last year.
• Crude stocks are 14 billion bbls above last year.
• Overall product stocks are 16 million bbls below 2012.
• Petroleum product demand is running 8.5% higher than last year for the four week average.

Japan

• Crude imports have moved lower resulting in a strong crude stock draw.
• Gasoline and diesel demand eased back with minor stock changes for both.
• Kerosene stocks have submitted a strong build rate.

Atlantic Basin

• There have been more light product imports into Latin America and Africa due to stagnant refinery capacity.
• The growth in crude production is likely to have a profound impact on the regional crude supply/demand balances.
• Refinery runs in the Atlantic Basin area countries have declined in recent years after peaking in 2005 – 2007 but are expected to resume slow growth with the increases in the US and Latin America offsetting European declines.
• Projected growth in crude production is much greater than the increase in refinery runs.
• The above will most likely result in a large crude surplus in the region forcing foreign markets to be explored with particular focus on Asia. 

Read the article online at: https://www.oilfieldtechnology.com/exploration/10122013/8th_dec_oil_market_recap_pira905/