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U.S. crude stocks decreased

June 15/2021

MOSCOW (MRC) -- U.S. crude oil stockpiles that include the Strategic Petroleum Reserve fell for the 11th straight week as refiners ramped up output, but fuel inventories grew sharply due to weak consumer demand, the Energy Information Administration said, as per Hydrocarbonprocessing.

Crude inventories that exclude the SPR fell by 5.2 million barrels in the week to June 4 to 474 million barrels, the third consecutive weekly drop, as refiners have boosted output as the economy recovers after the COVID-19 pandemic and in anticipation of more summer driving.

However, fuel stocks were up sharply, as demand was weak in the most recent week, with the product supplied falling to 17.7 MMbpd vs 19.1 million the week before.

Many people already had fuel because gasoline buyers across the U.S. East Coast hoarded supplies after the Colonial Pipeline ransomware attack shut the nation's largest fuel line for several days. Fuel demand also took a hit from thunderstorms up and down the coast during the Memorial Day weekend.

"These are lame demand numbers," said Robert Yawger, director of energy futures at Mizuho. "It seems the gasoline build is largely a function of the miserable weather we had Memorial Day weekend. It was pouring out, there was nowhere to go."

U.S. gasoline stocks rose by 7 million barrels in the week to 241 million barrels, compared with analysts' expectations for a 698,000-barrel rise. Distillate stockpiles, which include diesel and heating oil, rose by 4.4 million barrels, versus expectations for a 1.4 million-barrel rise.

Futures pared gains after the report. U.S. crude was up 28 cents to USD70.33 a barrel as of 10:48 a.m. EDT (1448 GMT) while Brent was 44 cents higher at USD72.66 a barrel.

Refinery crude runs rose by 328,000 barrels per day in the last week, EIA said. Refinery utilization rates rose by 2.6 percentage points, in the week.

As MRC informed earlier, Crude oil futures slipped during mid-morning trade in Asia June 11 after settling at fresh highs as the OPEC Monthly Report for June reinforced a positive demand outlook for the second half of the year. At 10.50 am Singapore time (0250 GMT), the ICE August Brent futures contract was down 57 cents/b (0.79%) from the previous settle at USD72/b, while the NYMEX July light sweet crude contract was down 51 cents/b (0.73%) at USD69.83/b.

Meanwhile, as MRC informed earlier, Indian refiners, anticipating a lifting of US sanctions, plan to make space for the resumption of Iranian imports by reducing spot crude oil purchases in the second half of the year. The world"s third-largest oil consumer and importer halted imports from Tehran in 2019 after former US President Donald Trump withdrew from a 2015 accord and re-imposed sanctions on the OPEC producer over its disputed nuclear programme.

Ethylene and propylene are the main feedstocks for the production of polyethylene (PE) and polypropylene (PP), respectively.

According to MRC's ScanPlast report, Russia's estimated PE consumption totalled 744,130 tonnes in the first four month of 2021, up by 4% year on year. Shipments of all PE grades increased. At the same time, PP deliveries to the Russian market were 523,900 tonnes in January-April 2021, up by 55% year on year. Supply of homopolymer PP and PP block copolymers increased, whereas shipments of PP random copolymers decreased.
Author:Anna Larionova
Tags:petroleum products, crude oil, PP, PE, neftegaz, petrochemistry, Russia, USA.
Category:General News
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