Oil prices were mixed Friday morning, with Brent <LCOc1> trading slightly higher from the previous settle at $52.55/bbl as of 9:30 AM UKT. However, ongoing turmoil in the US oil industry caused by the Tropical Storm Harvey weighed on WTI <CLc1>, which had slipped by 39 cents from the settle, trading at $46.84/bbl at the same time.
The PJK reported a 337,000 mt increase in total oil product stocks stored in the ARA-hub to 5.9 million mt in the week ending 25th August. Gasoil stocks, which include Diesel and Heating oil, slightly declined last week, down by 11,000 mt to 2.7 million mt, on increased diesel shipments to the US. Continued disruptions in the US Gulf Coast refining hub fuelled oil product prices, prompting traders to ship more oil products across the Atlantic to fill in supply shortages.
Gasoline stocks were marginally higher w-o-w, standing at 903,000 mt, still remaining well below levels seen at the same time a year ago. Gasoline refining margins in Northwest Europe remained supported by widespread refinery outages in the US Gulf Coast. We expect to see more pronounced drawdowns in European product stocks this week as more products are expected to leave the region.
Subdued demand from the region, as well as Asian customers, saw Fuel oil stocks continue building up last week by 296,000 mt. Standing at 1.4 million mt, last week’s levels substantially exceeded those seen at the same time last year.
The Oil Research Team
Supply Chain & Commodities Research