Russian Crude Exports Soar in April

Hydrocarbon Engineering: Russian crude exports will reach a multiyear high of 5.7 million bpd in April, 400 000 bpd higher than average exports in the previous 5 months, according to a market alert released by ESAI Energy. Among other things, unusually high exports have implications for market share in Asia. As the past few years’ fluctuations in Russian exports have shown, unusually high exports are accompanied by greater flows of Russian crude into Asia.

LPG Surplus Rears its Head

Hellenic Shipping News: The end-winter transition from draws to builds in U.S. propane stocks is arriving early, according to ESAI Energy’s newly published Global NGL One Year Outlook. As ESAI Energy describes, the global LPG market will remain in surplus in 2019, resulting in stock builds, wide propane and butane discounts to naphtha. The implications range from the negative impact on petchem demand for naphtha in Asia and Europe to the likelihood of propane and butane stranded in the Gulf Coast pricing into the U.S. petchem feed slate.

Surplus global LPG stocks to continue through 2019

The end-winter transition from draws to builds in US propane stocks is arriving early, according to ESAI Energy’s newly published Global NGL One Year Outlook. As it describes, the global LPG market will remain in surplus in 2019, resulting in stock builds and wide propane and butane discounts to naphtha. The implications range from the negative impact on petchem demand for naphtha in Asia and Europe to the likelihood of propane and butane stranded in the Gulf Coast pricing into the US petchem feed slate.

Refiners Stung by Venezuela Sanctions Face U.S. Gulf Oil Exodus

Bloomberg:

Crude exports from the Gulf of Mexico are picking up at the worst time for American refiners.

Rising production and falling freight rates are behind a surge of overseas shipments of Mars crude, a medium sour oil produced in the U.S. Gulf of Mexico. This comes as sanctions on Venezuela and OPEC’s production cut agreement are limiting the availability of similar types of oil that U.S. refiners are optimized to process.

AMLO’s Battle Against Fuel Theft

World Pipelines: 

Mexico’s new President, Andrés Manuel López Obrador, hoped to kill two birds with one stone: reduce theft from gasoline pipelines and diminish Mexico’s reliance on gasoline imports from the US. Instead, the recent pipeline closures and related explosion that resulted in the deaths of at least 96 people have caused a spike in gasoline imports from the US in January. This increase in imports, notes ESAI Energy’s recent Latin America Watch, comes even as supply shortages have dented demand for motor gasoline by as much as 40 000 bpd this month.

Jet keeps driving European distillate demand growth in 2019

Hellenic Shipping:

According to ESAI Energy’s recently released Europe Watch Products, European jet fuel demand will rise by just 30 000 bpd this year, compared with 60 000 and 80 000 bpd in 2018 and 2017, respectively, as growth in both passenger and freight air traffic continues to slow. Nevertheless, jet fuel will continue to account for the vast majority of total distillate demand growth in the region.

Jet keeps driving European distillate demand growth in 2019

Hydrocarbon Engineering:

According to ESAI Energy’s recently released Europe Watch Products, European jet fuel demand will rise by just 30 000 bpd this year, compared with 60 000 and 80 000 bpd in 2018 and 2017, respectively, as growth in both passenger and freight air traffic continues to slow. Nevertheless, jet fuel will continue to account for the vast majority of total distillate demand growth in the region.