U.S. Petroleum Weekly – March 17, 2011
(For The Week Ending March 11, 2011)
Libya is out of the markets, but judging from the recent events the rebels are on the brink of defeat and since world needs oil purchases of Libyan crude could resume in following months.
Focus in the last few days has shifted to Bahrain, there also the ruling regime is succeeding to restore order using extremely violent measures.
The biggest question is the demand impact of Japanese earthquake, tsunami and nuclear disaster. I believe that short term demand shock is widely underestimated, but for the time being and despite the fundamental facts mentioned above I believe crude oil is bound to rise on all of this uncertainty.
Crude oil stocks rose 1.7 million barrels; Gasoline stocks fell 4.2 million barrels; Distillate stocks decreased 2.6 million barrels; Propane/propylene stocks were up 0.3 million barrels; Other oils stocks rose 1.5 million barrels; Total crude oil and petroleum stocks were 5.1 million barrels lower for the week.
Refining industry discipline and seasonal demand patterns are (very slowly) bringing down stockpiles.
All the pricing imbalances still here.
