The Middle East’s fuel oil import requirement will increase by 50,000 b/d this year and by a further 100,000 b/d in the first half of 2019 to reach 340,000 b/d. Kuwait and the UAE’s imports will rise the most, as refinery upgrades and repairs cut fuel oil output this year and next. Strong Iraqi demand will also support fuel oil spreads to crude this year, but not in 2019.
Robust gasoline demand in Mexico will sustain the need for imports at last year’s levels through 2018, despite some recovery in Mexico refinery runs. Demand will grow by 20,000 b/d this year to reach 790,000 b/d. For the region as a whole, demand will remain flat at 2.6 million b/d, with contractions in Brazil, Venezuela, and the Caribbean offsetting Mexico’s growth.
The outage of Colonial Pipeline’s gasoline line temporarily eliminates an irreplaceable source of gasoline to the East Coast. The disruption will cause NYH gasoline to be priced at a premium that will…
Reuters: October 25, 2016
“At a very basic level, it would be a climate vote,” said Sarah Emerson, the head of Energy Security Analysis Inc in Boston. “Do you want fossil fuels, or renewables?”
Even as Latin America’s refining sectors remain under pressure from disruptions and economic decisions to reduce run rates, the regional diesel deficit will not expand as demand growth remains elusive into 2017.
Bloomberg: October 12, 2016
Pemex is looking for new destinations for its crude as exports rose to 1.26 million barrels of oil daily in August, the highest in 10 months…Shipments increased as low refinery utilization rates freed more supplies for international markets, John Galante, a senior analyst at Boston-based ESAI Energy…