Refiners

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dan_s
Posts: 34725
Joined: Fri Apr 23, 2010 8:22 am

Refiners

Post by dan_s »

Refined products inventories for gasoline and middle distillates have been falling for several weeks. In the U.S. Total Petroleum Inventories have been on decline since mid-February. Commentary on the weekly EIA storage report is focused on crude oil inventories, but it is total inventories that s/b watched closer.

Refiners are now getting back to work. The maintenance driven falloff in refinery demand for crude oil is now reversing. Refiners are now coming out of "turnaround season" and will ramp up production.

IEA in their Oil Market Report says refiners will process 1.9 million barrels per day more of crude oil in Q2 than they did in Q1. Part of this is because "summer blend" gasoline cannot contain as much butane.
Dan Steffens
Energy Prospectus Group
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