PIRA have said that the US is now the world’s largest supplier of oil.
USA
- Total liquids supply this year is expected to average 12.1 million bpd.
- Shale liquids have risen 3.2 million bpd over the last four years.
- Tropical storm Karen did not reduce crude imports and has lead to a very large crude stock build up.
Refinery capacity
- The world has a surplus of refinery capacity but more is on the way.
- World refining distillation capacity is set to increase by 5%/2.6 million bpd by the end of this year and another 2.1 million bpd will come online in 2014.
- The biggest increase in processing capacity over the next two years will come from China and the Middle East.
Ethanol
- US ethanol prices have increased for the first time in three weeks.
- Production declined and inventories fell to their lowest level since the EIA began reporting weekly stocks in June 2010.
- RIN markets crashed after circulation of a purported draft of an EPA report setting lower biofules mandates for next year.
Japan
- Storms and Typhoons have been tracking toward Japan on a continuous basis.
- Due to weather interruptions, gasoline stocks drew modestly whiles gasoline stocks drew to a new record level.
- Stocks drew heavily as there is a low crude import figure.
- Refinery margins in Japan have remained weak.
Qatar
- Qatar has had financial benefit from placing more LNG in Asia at a premium to Atlantic Basin Spot Prices.
- The country has been able to place incremental volumes into Japan, Korea and China, at close to its relatively strong oil linked prices.
Adapted from press release by Claira Lloyd