EIA: US crude stockpiles fall the most in nearly a year

MOSCOW (MRC) — US crude oil inventories fell for the seventh consecutive week in their largest drawdown in nearly a year while exports and production continued to rise, the Energy Information Administration said on Wednesday, said Reuters.

Crude inventories fell 8.95 MMbbl in the week to Aug. 11, nearly three times analysts' expectations for a decrease of 3.1 MMbbl and the largest draw in since the week to Sept. 2. At 466.5 MMbbl, crude stockpiles were at their lowest since January 2016. Including emergency reserves, crude stocks were at 1.15 Bbbl, the lowest levels since October 2015, according to EIA data.

Crude stocks at the Cushing, Oklahoma, delivery hub for US crude futures rose 678,000 bbl, EIA said. The report also had bearish elements, as 2.5 MMbbl of the draw was on the West Coast, somewhat limiting the market impact of the drop, said David Thompson, executive vice-president at Powerhouse, an energy-specialized commodities broker in Washington.

After the data, crude futures extended gains but then turned negative, with West Texas Intermediate (WTI) crude futures fell 22 cents to $47.33 a barrel by 11:25 a.m. EDT (1525 GMT), after rising to USD47.99. Brent crude futures were unchanged at USD50.80/bbl, after trading as high as USD51.40 earlier in the session.

US refinery crude runs fell by 9,000 bpd, as utilization rates slipped by 0.2 percentage point from 12-year highs to 96.1% of total capacity, EIA data showed. Gasoline stocks were unchanged, compared with analysts' expectations in a Reuters poll for a 1.1-MMbbl drop.

Distillate stockpiles, which include diesel and heating oil, rose 702,000 bbl, versus expectations for a drop of 572,000 bbl, the EIA data showed. US crude imports rose last week by 194,000 bpd.

US crude production rose to 9.5 MMbpd from 9.4 MMbpd in the previous week. Crude oil exports also rose, jumping to 877,000 bpd from 707,000 bpd. US crude production has been closely watched by OPEC and other producers that have tried to stem a global supply glut.

The Organization of the Petroleum Exporting Countries together with non-OPEC producers including Russia have pledged to restrict output by 1.8 MMbpd between January this year and March 2018.

US output has filled part of that gap. "The rise in crude production continues to happen," said Gene McGillian, director of market research at Tradition Energy. While nearly 70 MMbbl of inventory decreases have been reported this summer, the market is waiting for a signal after the Labor Day holiday, when demand usually tapers, he said.

"If we see these draws past Labor Day, it will drive the market, possibly past USD50."
MRC

MOSCOW (MRC) -- XOS has announced the worldwide release of Petra MAX, a new D4294 analyzer with combined analysis of 13 elements from P to Zn. Petra MAX delivers high-precision sulfur analysis in addition to rapid monitoring of critical elements like Ca, Fe, K, Ni, and V at sub-ppm levels, said Hydrocarbonprocessing.

Test methods for measuring sulfur content, like ASTM D4294 and ISO 8754, have become critical for assessing the value of crude oil, the company said in a press release. The blending of crude oils from different sources has become more commonplace within the industry to meet specifications for the classification of sweet crude oil. The introduction of new crudes brings new challenges, like higher concentrations of metals known to rapidly deactivate process catalysts in the catalytic cracker and hydrotreaters, and cause pump and exchanger fouling, and off-specification coke.

Petra MAX is powered by HDXRF, utilizing XOS patented doubly curved crystal optics coupled with a high-performance silicon drift detector and a monochromatic excitation beam. According to XOS, this technology reduces background noise and increases signal-to-noise output, enabling low detection limits and high precision without the need for consumable helium gas, a vacuum pump, or extensive sample preparation.
MRC

MOSCOW (MRC) -- South Korean specialty chemicals company Songwon Industrial Co Ltd has launched its new pilot plant in Panoli (Gujarat), thereby strengthening the organisation’s overall specialty chemicals development capability, said Business-standard.

Built on Songwon’s Indian site with all the necessary main unit operations, the new plant is equipped with the most up-to-date technologies and materials for producing a wide range of chemicals for a broad spectrum of applications - from one kilo up to several hundred kilo samples. To reinforce the organisation’s position in existing areas of business and enhance its ability to enter new areas, the new pilot plant will be supported by the Songwon’s strong local R&D team in Panoli, as well as its central technology innovation center located in Maeam, Korea.

“Technology and product innovation is at the core of Songwon’s business strategy. With our high-quality manufacturing expertise and strong R&D, we have already earned a solid reputation in the industry. This new facility will play an important role in ensuring that Songwon can continue developing new industrial technologies to meet evolving market needs and make it possible for us to reliably supply customers with innovative products for testing and approval,” said Giacomo Sasselli, leader operations, Songwon.

Headquartered in Ulsan (South Korea), Songwon Industrial Co is a leader in the development, production and supply of specialty chemicals. The second largest manufacturer of polymer stabilisers worldwide, Songwon operates group companies all over the world, offering the combined benefits of a global framework and readily accessible local organisations.

MRC

MOSCOW (MRC) — Venezuela's PDVSA and its joint ventures last month shipped 638,325 bpd of crude to the United States, a 30% increase over June due to larger sales of upgraded oil, according to Thomson Reuters trade flows data, said Hydrocarbonprocessing.

Venezuelan crude output has declined this year to its lowest point in 27 yr due to a lack of investment and payment delays to oil service firms, affecting exports to customers in key markets including the United States.

Even though the volume of crude sent to the United States in July was larger than the previous month, it was 22% below the same month in 2016. The main US receiver of Venezuelan crude last month was refiner Valero Energy, followed by PDVSA's refining unit in the United States, Citgo Petroleum.

PDVSA earlier this year signed a refinancing agreement with Russian energy giant Rosneft that has diverted more oil to that firm, and fewer volumes to Citgo.

But Citgo has requested more upgraded crude from joint ventures between PDVSA and its foreign partners in the Orinoco Belt, which has partially compensated for lower supplies from its parent company. Upgraded oils are those that have been treated at special facilities built to process extra heavy crude from Venzeuela's largest oil-producing region.

Another prominent buyer of Venezuelan crude in the United States, refining firm Phillips 66, did not receive crude supplies from PDVSA last month, according to the data.

US-based PBF Energy, Marathon Petroleum, Valero and Phillips 66 have reduced their purchases of heavy oil in recent weeks due to less barrels available from Venezuela and other OPEC producers, which is narrowing spreads between heavy Latin American crudes and lighter grades.
MRC

MOSCOW (MRC) — US energy company Chevron Corp and trading firm Glencore on Thursday announced separate plans to enter Mexico's fuel market, as the long-hidebound sector begins to attract major foreign players, said Reuters.

Glencore expects to start importing fuel for Mexico's domestic market in February 2018 through its own terminal in the southern state of Tabasco, according to Alex Beard, the head of the firm's oil division.

"As soon as we have an opportunity to import through our own infrastructure in Tabasco, we will," Beard said at the inauguration of the first gas station branded under the franchise G500, created from a distribution partnership by Glencore and Corporacion G500, signed in May.

Chevron said in a statement it will import, distribute and sell refined products in partnership with a local gas station network it did not name. The company will shortly open its first gas station in Hermosillo, in northwest Mexico.

In subsequent weeks, Chevron expects to launch outlets in the states of Sonora, Sinaloa, Baja California and Baja California Sur, all of which are in the northwest of the country. The liberalization of retail prices in Mexico has spurred business opportunities for large refining and trading companies who want to distribute and sell imported fuels.

The entry of big players is a boost for the government as its broad energy sector opening, which carved up state monopolies in oil, gas and electricity, begins to gain momentum.

Still, Mexico's fuel sector is not without its challenges, including widespread theft by violent gangs, often working in collusion with the employees of state-oil company Pemex.
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