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HIGHLIGHTS
Oil futures escalated in August on rising geopolitical tensions over Syrias suspected use of chemical weapons and the near total shutin of Libyan production. Prices turned lower in earlySeptember as a Russian proposal for Syria to surrender its chemical weapons gained traction.Brentwaslasttradingat$111.60/bbl,WTIat$107.50/bbl. The forecast of global demand growth remains flat at 895kb/d for 2013, as strongerthanexpected deliveries in July offset concerns about the demand impact of currency fluctuations in emerging market economies. Demand growth is forecast to rise to 1.1 mb/d in 2014, as theunderlyingmacroeconomicbackdropsolidifies. Global supply is estimated to have fallen by 770 kb/d in August to 91.59 mb/d, with both nonOPEC and OPEC registering monthly declines.In3Q13nonOPECproductionisexpectedtoriseby520kb/d qoq as a seasonal decline in the North Sea is more than made up for byNorthAmericangrowthandsteadyproductionelsewhere. OPECcrudesuppliesfellby260kb/dto30.51mb/dinAugustasnear recordSaudioutputonlypartlyoffsetacollapseinLibyanproduction. The call on OPEC crude and stock change was raised by 200 kb/d on higher demand for 3Q13 but lowered by 100 kb/d for 4Q13, to 30.3mb/dand29.6mb/d,respectively. OECD commercial total oil stocks built by a weak 8.0 mb to 2659mb in July, bringing their deficit to the fiveyear average to 65mb, its widest in two years. Refined products covered 30.7 days of forward demand, a rise of 0.6 day on endJune. Preliminary data indicate OECDinventoriesdrewcounterseasonallyby14.2mbinAugust. Global refinery crude runs reached a seasonal peak in July, at an estimated 78.2 mb/d, up 1 mb/d from June and 1.8 mb/d above a yearearlier.ThroughputsaresettofallsteeplyfromAugustonweaker margins and heavy maintenance. Global runs average 77.2 mb/d in 3Q13,up1.1mb/dyoy,and76.8mb/din4Q13.
TABLE OF CONTENTS
HIGHLIGHTS....................................................................................................................................................................................... 1 HEATING UP AND COOLING DOWN ..................................................................................................................................... 3 DEMAND ............................................................................................................................................................................................. 4 Summary........................................................................................................................................................................................... 4 Global Overview ............................................................................................................................................................................ 4 Emerging Market Currency Depreciation Set to Impact Demand .......................................................................................... 5 Top 10 Consumers ........................................................................................................................................................................ 6 OECD ............................................................................................................................................................................................. 12 Americas ................................................................................................................................................................................... 12 Europe ....................................................................................................................................................................................... 13 Asia Oceania ............................................................................................................................................................................. 14 Non-OECD ................................................................................................................................................................................... 14 SUPPLY ................................................................................................................................................................................................ 16 Summary......................................................................................................................................................................................... 16 OPEC Crude Oil Supply ............................................................................................................................................................. 17 Libyan Oil Supplies Cascade Lower .......................................................................................................................................... 20 Non-OPEC Overview ................................................................................................................................................................. 22 OECD ............................................................................................................................................................................................. 23 North America ........................................................................................................................................................................ 23 Mexicos Proposed Energy Sector Reforms A Watershed for the Energy Industry? ......................................................... 24 North Sea.................................................................................................................................................................................. 27 Non-OECD ................................................................................................................................................................................... 27 Latin America ........................................................................................................................................................................... 27 Asia ............................................................................................................................................................................................. 28 Africa .......................................................................................................................................................................................... 28 Former Soviet Union .............................................................................................................................................................. 29 OECD STOCKS ................................................................................................................................................................................ 31 Summary......................................................................................................................................................................................... 31 OECD Inventory Position at End-July and Revisions to Preliminary Data ....................................................................... 31 Analysis of Recent OECD Industry Stock Changes .............................................................................................................. 32 OECD Americas ...................................................................................................................................................................... 32 European Industry Stock Draws in Perspective ....................................................................................................................... 33 OECD Europe.......................................................................................................................................................................... 34 OECD Asia Oceania ............................................................................................................................................................... 35 Recent Developments in Singapore and China Stocks......................................................................................................... 36 PRICES ................................................................................................................................................................................................. 38 Summary......................................................................................................................................................................................... 38 Market Overview ......................................................................................................................................................................... 38 Futures Markets ............................................................................................................................................................................ 40 Financial Regulation ................................................................................................................................................................. 42 Spot Crude Oil Prices ................................................................................................................................................................. 42 Spot Product Prices ..................................................................................................................................................................... 44 Freight ............................................................................................................................................................................................. 46 REFINING ........................................................................................................................................................................................... 48 Summary......................................................................................................................................................................................... 48 Global Refinery Overview .......................................................................................................................................................... 48 Refining Margins ....................................................................................................................................................................... 49 OECD Refinery Throughput...................................................................................................................................................... 51 Non-OECD Refinery Throughput ............................................................................................................................................ 54 TABLES................................................................................................................................................................................................ 57
M ARKET O VERVIEW
12 S EPTEMBER 2013
D EMAND
DEMAND
Summary
Global oil demand growth is forecast to pick up to 1.1mb/d in 2014 from 895 kb/d in 2013 as the underlying macroeconomic situation improves. Global oil demand is projected to average 90.9mb/d in2013and92.0mb/din2014. High cooling use in July and August raised the estimate of demand for 3Q13, compounding the impactofmodestimprovementsintheeconomy.Roughly260kb/dhasbeenaddedtothetotal3Q13 global consumption estimate, to 91.5mb/d, since last months Report. Upward adjustments to the July demand estimates for the US (+190kb/d), China (+175kb/d) and Russia (+90kb/d) led the revision.
Global Oil Demand (2012-2014)
(millio n barrels per day)
Africa Americas Asia/Pacific Europe FSU Middle East World Annual Chg (%) Annual Chg (mb/d) Changes from last OMR (mb/d)
1Q12 2Q12 3Q12 4Q12 2012 3.6 3.6 3.6 3.7 3.7 29.6 30.1 30.3 30.4 30.1 29.9 29.1 29.2 30.5 29.7 14.3 14.5 14.5 14.3 14.4 4.3 4.4 4.6 4.6 4.5 7.3 7.8 8.2 7.5 7.7 89.0 89.5 90.5 91.1 90.0 0.7 1.9 0.7 1.5 1.2 0.7 1.7 0.6 1.3 1.1 0.04 0.15 0.06 0.04 0.07
1Q13 2Q13 3Q13 4Q13 2013 3.8 3.8 3.8 3.9 3.8 30.1 30.3 30.5 30.4 30.3 30.5 29.6 29.6 30.8 30.1 13.8 14.5 14.4 14.1 14.2 4.3 4.5 4.8 4.8 4.6 7.5 7.8 8.4 7.7 7.8 89.9 90.5 91.5 91.7 90.9 1.0 1.1 1.1 0.7 1.0 0.9 1.0 1.0 0.6 0.9 0.02 0.08 0.26 -0.08 0.07
Currency depreciation in a number of emerging markets, adding to the impact of already high oil prices, has raised the possibility of further associated price effects on demand. Several countries including India, Indonesia, Malaysia, Peru, the Philippines and Thailand have faced dramatic currencydepreciationversustheUSdollarinrecentweeks.Ifsustained,thismayultimatelycurbtheir demandtrendor,incountrieswhereoilsubsidiesareinplace,raisepressureontheirgovernmentsto reducethosesubsidyprogrammes. The divergence in demand trends between emerging markets and developed economies has been easing somewhat lately. Data for 2Q13 show the OECD demand contraction slowing to 0.3% yoy and nonOECD demand growth easing to 2.6%, a much narrower gap in the growth pattern than the averageofthelastfiveyears.
1Q14 2Q14 3Q14 4Q14 2014 3.9 4.0 4.0 4.1 4.0 30.1 30.4 30.7 30.5 30.4 31.1 30.1 30.3 31.4 30.7 13.8 14.0 14.4 14.2 14.1 4.4 4.6 4.9 4.9 4.7 7.6 8.1 8.6 8.0 8.1 91.0 91.3 92.7 93.0 92.0 1.2 0.9 1.3 1.4 1.2 1.1 0.8 1.2 1.3 1.1 0.03 0.13 0.07 0.06 0.07
Global Overview
The possibility of slowing oil demand in emerging markets has dominated the headlines recently, with reportsofsharpcurrencydepreciationinseveralnonOECDcountriescompoundingtheeffectofalready high oil prices in US dollar terms. Higher prices, with all else being held equal, have a negative influence on demand, although in many countries subsidies can cushion their effect for some time. Countering such concerns are the latest demand numbers, which on balance came in stronger than expected for July. Overall, global oil demand is forecast to average roughly 90.9mb/d in 2013, up by 895kb/d (or 1.0%) yoy, essentially unchanged on last months growth estimate. Growth is expected to accelerate in 2014 to around 1.1mb/d (or 1.2%), lifting demand to 92.0mb/d, as the macroeconomic backdrop continues toimprove.TheInternationalMonetaryFundsJulyWorldEconomicOutlookforecastariseinglobalGDP growth to 3.8% in 2014, from 3.1% in 2013; predictions that underpin our oil forecasts. Heightened
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D EMAND
Cooling Degree Days - Japan Days Diff. to 10-Year Average and Last Year 60 50 40 30 20 10 0 -10 Aug 12 Nov 12 Feb 13 May 13 Aug 13
Diff to 10-year Avg Diff to Previous Year
The estimate of global demand for 3Q13 was revised higher by around 260kb/d since last months Report. Several countries account for the bulk of the adjustments for July, including the US (+190kb/d), China (+175kb/d), Russia (+90kb/d), France (+75kb/d), Germany (+70kb/d) and Japan (+45kb/d), as warmerthannormal temperatures lifted air conditioning use and compounded the effect of fledgling economic recovery. Although the electricity sector is increasingly less reliant on oil for its power needs (see Medium Term Oil Market Report 2013) some countries still use oil, while vehicle engine efficiencies deteriorate when air conditioning is in use. A downward adjustment of 130kb/d to the estimate of Indian demandforJulyprovidedapartialoffset,asdidanumberofsmallerreductionssuchasthatseen in Mexico (25kb/d). Revised June estimates have also been collated, with the upside roughly balancing the downside. Upward demand adjustments for June include the UK (+130kb/d), Chinese Taipei (+85kb/d), the Netherlands (+45kb/d), France (+35kb/d) and Australia (+30kb/d), offsetting curtailmentsintheUS(220kb/d),Germany(90kb/d)andChina(85kb/d). In the last few months, the divergence in growth patterns between the OECD region and the emerging market and developing economies has eased somewhat. As of 2Q13, OECD oil demand remains on a falling trend, but the pace at which it declines has fallen back to a relatively muted0.3% over the year earlier, versus a previous fiveyear average annual decline of 1.7%. For nonOECD economies, growth slowedto2.6%in2Q13fromafiveyearaverageof3.6%. Emerging Market Currency Depreciation Set to Impact Demand
The rapid depreciation of many emerging market currencies since 1Q13, if sustained, may adversely affect oildemand.AsoilispricedinUSdollars,whenanoilimportingcountryscurrencyfallsversustheUSdollar, its oil import bill in domestic currency rises. Given the History of selected currencies, scope of recent currency depreciation, coming on top of indexed to US Dollar already high oil prices in dollar terms, the latest currency 130 January 2013 = 100 movementsmaytranslateintoloweroilconsumptionover 125 120 time. Certain currencies in nonOECD Asia and Latin America have been hit hardest by speculation that the US Federal Reserve will soon begin tapering its assetpurchasing programme. The Indian rupee lost nearly onethird of its value against the US dollar in the four months through to theendofAugust.
115 110 105 100 95 90
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D EMAND
FX vs USD
70 65 60 55 50
Price (MYR)
FX vs USD
95 RON Gasoline
Diesel
FX
It is too early to predict the full impact from these currency swings, as we have yet to see the final scope of depreciation, let alone assess its macroeconomic impact and feedthrough into oil consumption, or the resultant degree to which subsidy programmes change. We have, however, assumed marginally lower oil demand across a selection of the hardesthit countries: India, Indonesia, Malaysia, Peru, the Philippines and Thailand. In aggregate, these revisions dampen the 2H13 forecast at the margin. Despite this pressure, emergingmarketoildemandisstillexpectedtoriseatarelativelybriskpacein2H13,particularlycompared with OECD countries, but at around 2.6% yoy the trend is well down on the previous fiveyear average of roughly 3.6%. Should currency depreciation continue/widen, the adverse demand effect will be more significant.
Top 10 Consumers US
The latest US official consumption figures assessed monthly demand at around 18.8mb/d in June, a decline of 1.0% on the year earlier. Based on those data and preliminary demand estimates for July and August, which are based on weekly data from the US Energy Information Administration, just half of the first eight months of 2013 show yoy demand growth. Our US demand outlook thus remains somewhat restrained: roughly flat growth for 2013 and a slight decline in 2014. Not only does the IEA foresee further strong efficiency gains capping consumption, but also the possibility that the US economy, despite accelerating, will lack sufficient momentum to support any greater upside in demand. The IMFs July outlook forecasts US GDP growth at 2.7% for 2014, which, when combined with the relatively high oilpriceenvironmentandongoingefficiencygains,willlikelycurbUSoildemand.
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D EMAND
kb/d 9,400
9,000
8,600
8,200 Apr Jul Oct Jan Jan Apr Range 08-12 2012 Jul Oct Jan Range 08-12 2012 5-year avg 2013 5-year avg 2013
Despitereportsofrecent strengthintheUSdemand,theunderlyingmacroeconomicsremainsomewhat subdued. Economic growth in 2Q13 amounted to just 0.4% over 1Q13 (but 1.7% when annualised). In essence, the 2Q13 US GDP growth trend was actually below that experienced by the UK, Korea, Germany,FranceandJapan,andslowerthantheUSpaceofgrowthasrecentlyas3Q12.
Top-10 Oil Consumers
(thousand barrels per day)
Demand
Jun-13 US50 China Japan Russia India Saudi Arabia Brazil Germany Korea Canada % global demand 18,786 10,221 3,877 3,575 3,415 3,281 3,043 2,492 2,301 2,233 59%
2013 18,661 10,140 4,542 3,404 3,427 3,026 3,088 2,382 2,311 2,295 59%
2014 18,618 10,520 4,422 3,512 3,543 3,138 3,185 2,372 2,315 2,297 59%
Jun-13 -1.0 5.4 -5.8 4.2 -1.9 1.6 2.8 -1.1 -1.5 1.3
2013 0.3 3.8 -3.7 3.2 2.6 3.6 3.4 -0.3 0.4 0.4
2014 -0.2 3.7 -2.6 3.2 3.4 3.7 3.1 -0.4 0.2 0.1
Looming US sequester cuts and arguments about the debt ceiling are likely to dampen consumer sentiment in 2H13, with a particular strong impact on gasoline demand as high retail gasoline prices and declining consumer confidence compound the impact of vehicle efficiency gains. The US Energy InformationAdministrationestimatesthattheefficiencyoftheUSlightvehiclepoolimprovedbyaround 1.9%yoyin1H13.
China
This has been a mixed month for Chinese demand data, with offsetting adjustments to the June (85kb/d) and July (+175kb/d) series. This net addition meant that despite the maintenance of our forecast for significantly slower growth in 2H13, the forecast for the year as a whole has been raised modestly,to3.8%versuslastmonths3.7%projection. Revised estimates of Chinese apparent demand (defined as the sum of refinery output and net product imports, minus product inventory builds) depict roughly 10.2mb/d of oil products being consumed in June, a gain of 5.4% on the year earlier, supported by particularly sharp gains in transport fuels and naphtha. Preliminary July estimates imply a similar rate of growth, to 10.3mb/d, despite reports of product destocking which have the effect of inflating apparent demand estimates (see Chinese Demand Forecast Upgraded, OMR January 2013). Early indications point towards a significant deceleration in August,inlinewiththeforecastcarriedinlastmonthsReport,asrefinersreducedrunsby155kb/dover July.
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D EMAND
kb/d 10,500
kb/d 1,200
1,000
9,500
800
8,500 Jan 2011 Apr 2012 Jul Oct 2013 Jan 2014
600 Jan Apr Jul Range 2008-2012 2012 Oct 5-year avg 2013 Jan
Supporting the Chinese growth forecast of nearly 4%, in a year of exceptionally choppy demand, is the IMF assumption of 7.8% rise in GDP in 2013 (decelerating to 7.7% in 2014). The latest economic indicators such as industrial output rising 9.7% yoy in July and 10.4% in August add credibility to theseforecasts.
China: Demand by Product
(thousand barrels per day)
Demand
2012 LPG & Ethane Naphtha Motor Gasoline Jet Fuel & Kerosene Gas/Diesel Oil Residual Fuel Oil Other Products Total Products 753 985 1,953 438 3,406 496 1,736 9,768
Japan
The unusually warm early summer temperatures have raised the estimate of 2013 Japanese oil consumption as power sector needs (driven by air conditioning demand) are likely to exceed earlier expectations. Fuel oil and other product demand (which includes crude oil for direct burn) notably support power sector needs. For the year as a whole, an overall decline rate of 3.7% is now assumed (previously the forecast decline rate was 3.8%), taking total Japanese demand to an average of around 4.5mb/d. Consumption contracted by a steep 4.3% yoy in 2Q13 but is expected to show slower declines from then on. Having fallen sharply in 1Q13, gasoline demand will lead the reversal in fortunes in2H13,supportedbylikelygainsinconsumerconfidence.
kb/d 6,000 5,500 5,000 4,500 4,000 3,500 Jan Apr Range 08-12 2012 Jul Oct Jan 5-year avg 2013
kb/d 1,200 1,150 1,100 1,050 1,000 950 900 850 Jan
Jul
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D EMAND
India
InJuly,forthesecond consecutive month,Indiandemand contractedyoyas the countryseffectivede subsidisation programme continues to cut into diesel consumption. Since January, the government has been undergoing a programme of cutting the effective diesel price subsidy by roughly half a rupee per litre per month, whereby half a rupee is equal to roughly one US cent as of 11 September. Reduced agricultural demand and signs of slowing economic growth also contributed. Agricultural consumption has been particularly curbed as of late, with relatively plentiful rains reducing irrigation needs (a big gasoil/diesel user), while the recent economic slowdown has dampened consumption, a pressure compoundedaspriceshaverisen. Althoughconsumerpurchasingdecisionshave,todate,largelyavoidedthemostdireconsequencesfrom the rupees depreciation, with effective subsidies continuing to protect domestic diesel demand, the already cashstrapped government is under pressure to reduce these subsidies still further, or find alternative methods to curb use. The oil ministry, in an open letter to the Prime Minister, has outlined some potential measures, such as requesting that refiners reduce imports, encouraging people to consumeless,orrestrictingretailersopeninghours(anoptionsincediscarded).
kb/d 3,600
kb/d 1,600
3,100
1,200
2,600 Jan Apr Jul Range 2008-2012 2012 Oct 5-year avg 2013 Jan
800 Jan Apr Jul Range 2008-2012 2012 Oct 5-year avg 2013 Jan
Even if governments have many ways to discourage consumption, economists widely believe that the pricing mechanism is the most efficient method of distributing limited supplies. Indeed, the smaller gasolinesectorwhichaccountedforjust11.1%ofIndiandemandin2012,versus41.1%forgasoilhas already experienced some sharp price gains, with six hikes seen since May (gasoline prices having risen by 17.5% between the end of May of the beginning of September, whereas diesel prices have inched up amere3.4%). The price effect is far from perfect, however, as demonstrated by the continued strong gains seen in gasoline demand. Also the current programme of curbing the effective diesel subsidy is not simply a commitmenttoraisethepricebythestatedamount eachmonth,butinsteadapledgetodosountilthe socalled underrecoveries have disappeared. The term underrecoveries refers to the situation where the actual selling price is lower than the price retailers/distributors pay to refiners. This policy of small butsteadystepsshowedsignificantprogresswiththeunderrecoveriesgoingdown,fromabout9rupees per litre in January to 3.73rupees per litre for the fortnight of 16 May. Due to a combination of a declining rupee and increases in the Indian crude oil price basket, the underrecoveries shot up to 12.12 rupees per litre for the fortnight of 1 September. Since January, diesel prices have been raised seven times,foratotalof4.25rupeesperlitre. LocalmediaspeculationisrifethataoneoffRupee5perlitrehikeisintheoffing.Althoughthiscouldbe a step in the right direction, such a move looks unlikely with elections less than a year away. Whatever methodisadopted,wehavetrimmedourowndemandforecast,to2.6%in2013,from2.8%before.
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D EMAND
Russia
The strong recent Russian demand trend continues, with roughly 3.6mb/d consumed in July, a gain of 5.5%ontheyearearlierandmarkingthefifthmonthinarowthatgrowthhasexceededtheprevioussix month average. Once again, manufacturing continues to provide the majority of the demand support, with particularly sharp gains seen in gasoil, fuel oil and other products. Consumption of jet/kerosene and LPG has lagged as concerns regarding the pace of GDP growth have spread following the somewhat subdued2Q13number(+1.2%yoy).
kb/d 3,600 3,400 3,200 3,000 2,800 2,600 Jan
S o urc e : P e t ro m a rk e t R G , IE A
kb/d 400
300
200 Source: Petrom arket RG, IEA Jan Apr Jul Range 2008-2012 2012 Oct 5-year avg 2013 Jan
Apr
Jul
Jan
100
Regardless of the relatively strong 2Q13 demand showing with a near 3% gain in Russian oil use seen over the corresponding period for 2012 the forecast for the year as a whole remains largely unchanged,reflectingnaggingconcernsaboutthepaceofmacroeconomicmomentuminthesecondhalf of the year. Although the majority of 2013, thus far, saw expansionary manufacturing sentiment depicted in its confidence statistics, the perspective clearly darkened in July/August. Filtering from these forces,overalloilconsumptiongrowthisforecasttoaverageoutat3.2%inboth2013and2014.
Russian Manufacturing PMI 53 52 51
50 53 52 51 Brazilian Manufacturing PMI
50
Not e: 50=cont r act ion/ expansion t hreshold. Sour ces: HSBC, Markit
49 48 Aug12
Not e: 50=cont ract ion/ expansion t hreshold. Sources: HSBC, Markit
49 Aug12
Nov12
Feb13
May13
Aug13
Nov12
Feb13
May13
Brazil
Brazilian consumption in June averaged 3.0mb/d, 45kb/d less than our month earlier prediction. Slowing gasoil demand growth, itself a consequence of the Latin American nations recent industrial woes, underpinned the lower number. Industrial sentiment has been on a declining trend since the beginning of the year, although HSBCs Manufacturing Purchasing Managers Index (PMI) remained within expansionary territory until July, requiring a less rampant growth in gasoil use, up 2.8% yoy in June versus previous a 12month average gain of 6.5%. This midyear weakness, which is likely to continue through 3Q13 if the PMI is any guide, resulted in a modest curtailment in our 2013 growth forecast,to3.4%downbytwotenthsofapercentagepointonthatcarriedinlastmonthsReport.
10
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D EMAND
Saudi Arabia
The consumption data for June came out roughly inline with last months forecast, up 1.6% on the year earlier to 3.3mb/d. By far the greatest upside was seen in fuel oil, as demand surged to a nearfiveyear high supported by additional power sector usage. Absolute declines in other products and gasoil provided a partial offset, suggesting some switching of direct crude burn and gasoil to fuel oil in power generation. With the underlying macroeconomic environment likely to deteriorate in 2013 the InternationalMonetaryFund(IMF)forecastingGDPgrowthof4.0%in2013afteragainof5.1%in2012 then so, too, will oil demand growth, to 3.6% in 2013 from 4.7% in 2012. Similar growth (+3.7%) is foreseenin2014asthisroughtrendcontinues.
kb/d 3,500 3,100 2,700 2,300 1,900 Jan Apr Jul Range 2008-2012 2012 Oct 5-year avg 2013 Jan 300 200 Jan Apr Jul Range 2008-2012 2012 Oct 5-year avg 2013 Jan
Germany
Despite reports of an uptick in recent German economic activity, the demand forecast for the year as a whole remains essentially flat, as the underlying macroeconomic growth trend remains subdued. The greatest upside, in the forecast, is provided by industrially important gasoil and LPG, while downside momentum is provided by heavier fuel oil and the transportation markets of gasoline and jet/kerosene. Predictionsofcontinuedefficiencygainswilllikelykeepthedemandforecastrestrainedin2014.
kb/d 2,900 2,700 2,500 1,000 2,300 2,100 Jan Apr Range 08-12 2012 Jul Oct Jan 5-year avg 2013 800 Jan Apr Range 08-12 2012 Jul Oct Jan 5-year avg 2013
kb/d 1,400
1,200
Korea
At an average of 2.2mb/d in July, South Korean demand was in line with the forecast carried in last months Report. There has, however been something of a redistribution of product across the barrel, as the previously overestimated other product category was seemingly too high at the expense of a combination oftoolittle fueloil,LPG, naphthaand gasoil.Particularlystrong naphtha demandlikelyre emerged as the earlier spate of heavy cracker maintenance drew to a close. The overall consumption trend, for the year as a whole, is forecast to remain relatively flat, in line with government policy, little changedfromlastmonthsReport.
12 S EPTEMBER 2013
11
D EMAND
kb/d 2,500
2,300
2,100
850 750 Jan Apr Range 08-12 2012 Jul Oct Jan Jan 5-year avg 2013 Apr Range 08-12 2012 Jul Oct Jan 5-year avg 2013
1,900
Canada
Roughly 2.2mb/d of oil products were consumed in June, according to the latest official data, an increaseof1.3%ontheyearearlier.Robustgainswereseeninthetransportfuelsi.e.gasolineandjet and petrochemical industry supporting naphtha and LPG demand. Notable weaknesses were seen in the fuel oil sector, as tougher environmental regulations continue to see some switching out of heavier products. The forecast for 2013 has accordingly been downgraded modestly to a gain of 0.4% (previously 0.8%) as final June demand came out below our previous expectation alongside additional downsiderevisionstothebaselinedata.
kb/d 2,400 2,300 2,200 2,100 2,000 Jan Apr Range 08-12 2012 Jul Oct Jan
Jul
OECD
ContractioninOECDdemandcontinuedtoslowin2Q13,easingto0.3%yoy,itsnarrowestdeclinerate in a year. This relative improvement emerged due to a combination of latewinter weather heating demand in April (boosting gasoil/diesel use and to a lesser degree jet/kerosene) and budding signs of economic recovery in a few countries (notably Germany) towards the end of the quarter. Although the decline is forecast to regain momentum in 2H13, reaching 0.8% for the period and 0.6% in 2014 as a whole,thisremainswelldownonthepreviousfiveyearaverage.
Americas
Within the overwhelmingly weak OECD demand region, the Americas is likely to show the least feeble demand trend in 2013, which in itself amounts to a relatively flat 0.3% gain. This somewhat stagnant growth trend is forecast, as only Chile shows stronger oil demand growth (+2.3%) consequential on it possessing byfar the most robust macroeconomic underpinnings(+4.6%according to the IMFsJuly World EconomicOutlook,versus+2.9%forMexico,+1.7%fortheUSand+1.7%forCanada).Ongoingweaknessin Mexican fuel oil demand, a consequence of the power sectors growing preference for natural gas, dampened the overall demand trend with roughly 2.1mb/d consumed in July. For the year as a whole, growthinMexicanoiluseisforecasttoremainessentiallyflat(up0.1%),maintaininga2.1mb/daverage.
12
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D EMAND
m b/d
24.5
23.5
22.5 Jan
Jul
150 Jan Apr Range 08-12 2012 Jul Oct Jan 5-year avg 2013
Gasoline mb/d % pa OECD Americas* US50 Canada Mexico OECD Europe Germany United Kingdom France Italy Spain OECD Asia & Oceania Japan Korea Australia OECD Total
* Including US territories
Jet/Kerosene mb/d % pa 1.75 1.50 0.13 0.06 1.33 0.22 0.29 0.17 0.10 0.13 0.65 0.35 0.12 0.13 3.73 2.1 1.9 3.6 3.7 0.0 7.3 -2.7 0.0 -4.9 -4.4 3.6 7.6 -4.9 3.1 1.6
Diesel mb/d % pa 4.47 3.57 0.30 0.39 4.64 0.75 0.44 0.76 0.48 0.46 1.31 0.47 0.30 0.38 10.41 4.9 6.0 -4.6 0.5 2.4 3.7 0.7 5.5 -2.3 3.2 1.3 4.5 1.9 -0.4 3.3
Other Gasoil mb/d % pa 0.42 0.11 0.22 0.05 1.36 0.36 0.12 0.25 0.10 0.12 0.44 0.33 0.11 0.00 2.21 -11.0 -38.7 15.4 0.9 -9.1 -11.0 -5.7 -13.3 0.3 1.8 -9.2 -2.9 -4.8 0.0 -9.4
RFO mb/d % pa 0.68 0.30 0.03 0.24 0.99 0.13 0.04 0.06 0.09 0.13 0.74 0.44 0.25 0.02 2.41 -21.3 -26.7 -66.7 -5.4 -8.3 -3.1 -11.4 -5.4 -13.7 -30.1 -17.9 -21.3 -5.9 -7.3 -15.3
Other mb/d % pa 5.85 4.31 0.80 0.59 3.51 0.62 0.25 0.37 0.40 0.24 3.26 1.68 1.26 0.24 12.63 -1.22 -1.4 -2.6 2.7 0.1 4.2 -5.6 -2.9 2.1 -16.0 0.7 0.2 2.5 -4.3 -0.4
Total Products mb/d % pa 23.87 18.79 2.29 2.13 13.88 2.53 1.45 1.79 1.39 1.22 8.06 4.30 2.23 1.10 45.82 0.6 0.8 -0.9 0.8 -0.9 1.2 -2.7 -0.5 -2.1 -7.0 -1.7 -1.4 0.1 -1.3 -0.2
10.70 8.99 0.81 0.78 2.07 0.44 0.30 0.19 0.23 0.12 1.66 1.03 0.20 0.31 14.43
2.0 1.8 5.9 1.4 -0.6 2.6 -2.2 2.6 -3.2 0.2 0.2 1.6 -3.1 -1.2 1.4
Europe
The European demand picture remains somewhat subdued, despite reports of very warm July/August trimming 3Q13 vehicle efficiency rates (as additional vehicle air conditioning usage raises the average fuel requirement) and tentative signs of an economic bottomingout in the region, with 110kb/d (or 0.8%)lessoilproductslikelytobeconsumedin3Q13overtheyearearlier.Warmerclimesalsotriggered relatively high levels of summer vacation travel. The 3Q13 momentum is, however, an improvement on thepastfiveyears,whentheaveragedeclineratewascloserto0.4mb/d.
kb/d 2,100 2,000 1,900 1,800 1,700 1,600 Jan 2012 Apr Jul Oct Jan 5-year avg 2013
kb/d 1,150 1,100 1,050 1,000 950 900 850 800 Jan
Apr
2012
Jul
Oct
Jan
Following a steep contraction in 2012, the French demand sector, according to preliminary July data, showed modest signs of life. July demand of 1.8mb/d was 0.5% down on the corresponding period a year earlier, a much slower decline than the 2.2% average drop of the previous 12 months. Domestic
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transportfuelsledtheupside,withtotalgasoildemandup0.1%inJuly,to1.0mb/d,andgasolineuseup 2.6% to 185kb/d. The forecast for the year as a whole has been revised, to a decline rate of 1.4% versus the previous 2.1% estimate, consequential on roughly 75kb/d being added to the July estimate and 35kb/dtoJune.
Asia Oceania
The demand picture for OECD Asia Oceania continues to deteriorate, with preliminary July data pointing towards a 1.7% fall over the yearearlier period, although very warm temperatures in Japan and Korea causedthecontractiontoeasesomewhatcomparedtoitsrecenttrend.Thedemandforecastfor2013is now assessed at 8.4mb/d, down by 2.3% on the year earlier. Looking ahead, a moderation of this trend isenvisagedfor2014,withadeclinerateof1.2%forecast.Consumptionintheregionfallstoanaverage of around 8.3mb/d in 2014, well below 2012 highs of 8.6mb/d when the temporary addition of extra nuclearreplacementfueloilandotherproductsinJapanproppedupdemand.
m b/d 10.0 9.0 8.0 7.0 Jan Apr Range 08-12 2012 Jul Oct Jan 5-year avg 2013
Apr
2012
Jul
Oct
2013
Jan
2014
2011
Non-OECD
The pace of nonOECD demand growth has fallen back somewhat, reflecting macroeconomic headwinds recently compounded by currency depreciation in many countries. Nevertheless, emerging market oil demand continues to grow relatively rapidly, and is forecast to continue expanding at a fairly fast clip throughtheforecastperiodgrowthaveragingoutataround2.6%in2H13and3.0%for2014asawhole.
m b/d Non-OECD: Total Oil Product Demand 45 42 39 36 Jan Apr Jul Range 2008-2012 2012 Oct 5-year avg 2013 Jan kb/d 1,400 1,300 1,200 1,100 1,000 900 Jan Apr Jul Range 2008-2012 2012 Oct 5-year avg 2013 Jan
JunedemandforThailandcameinbelowmonthearlierexpectations,atroughly1.3mb/d,amodestgain of 2.0% on the year earlier versus the previous 4.2% projection that fell more closely into line with the previous 18month trend. Gasoil demand fell to its lowest level since October 2012, reflecting recent economic concerns. The Thai Industries Sentiment Index (TISI) fell in June, to 93.1 from 94.3 in May (any reading below 100 signals low confidence), as manufacturers expressed concern regarding falling exports. In contrast, naphtha consumption in Chinese Taipei surged in June, reflecting increased usage aheadofreportsofadditionalmaintenancebeingtakenin3Q13(seeOMRAugust2013).
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kb/d 450
350
250
FurthercomprehensiveanalysisofYemenioildemandaddedroughly30kb/d toour2010estimate.This additional consumption reflects a reworking of our demand model to incorporate the latest data from the IEAs Energy Statistics of nonOECD Countries. Our projection of future trends here has been modestly curtailed since last months Report to incorporate the news that a new 400 megawatt gas power power plant, in the countrys eastern Marib province, should be open by mid2014. Fuel oil dominatesthepowermixinYemen,buttheopening ofthenewgasfacilityin2014shouldbringabouta more rapid switch from oil to gas. The new plant should be sufficient to cover the total power sector needsofthecapitalSana,whichtheministryestimatesat320420megawatts.
Non-OECD: Demand by Region
(thousand barrels per day)
Jul
Jan
150 Jan
Jan
Demand
May-13 Africa Asia FSU Latin America Middle East Non-OECD Europe Total Products 3,691 21,487 4,510 6,537 7,830 718 44,773
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SUPPLY
Summary
GlobalsuppliesinAugust fellby775kb/dto91.59 mb/d, withbothnonOPECandOPECregistering monthly declines. Supplies were up around 620 kb/d from year ago levels, with a sharp rise in non OPEC output and OPEC NGLs of 1.74 mb/d more than offsetting a decline of just over 1.12 mb/d in OPECcrudeproduction. NonOPEC supplies fell by 510 kb/d in August to 54.51 mb/d as continued expansion of output in the US and Canada failed to counter seasonal declines in the North Sea, shutin production in China due to flooding, and offshore maintenance in Kazakhstan and Ghana. August production was still up 1.51mb/dyearonyear,inlinewithstrongannualgrowthof1.2mb/dforecastfor2013. OPEC crude oil supplies turned lower again in August with a sharp downturn in Libyan production only partially offset by nearrecord output from Saudi Arabia. August OPEC output was pegged at 30.51mb/d, down by 260 kb/d. The call on OPEC crude and stock change was adjusted up by 200kb/d on higher demand for 3Q13 but down by 100 kb/d on rising nonOPEC supplies for 4Q13, to 30.3mb/dand29.6mb/d,respectively.Thecallfor2013isunchangedat29.9mb/d. Libyan oil production plunged to a postwar low of 150 kb/d at one point in early September comparedwith550kb/donaverageinAugustand1mb/dinJulyamidcripplinglabourdisputes,civil unrestandpoliticaldiscordamonggovernmentofficialsandtribalmilitias.Thegovernmenthassetup a crisis committee tasked with negotiating a settlement among the various striking workers and tribal militiasinabidtogettheoilsectorfunctioningagainbuttodatetherehasbeenlittlevisibleprogress.
mb/d Year-on-Year Change 4.0 3.5 3.0 2.5 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 May 12 Aug 12 Nov 12 Feb 13 May 13 Aug 13
OPEC Crude OPEC NGLs Non-OPEC Total Supply
mb/d
64 62 60 58 56 54 52 50 Feb 13
All world oil supply figures for August discussed in this report are IEA estimates. Estimates for OPEC countries,AlaskaandRussiaaresupportedbypreliminaryAugustsupplydata.
Note: Random events present downside risk to the nonOPEC production forecast contained in this report. Theseeventscanincludeaccidents,unplannedorunannouncedmaintenance,technicalproblems,labourstrikes, political unrest, guerrilla activity, wars and weatherrelated supply losses. Specific allowance has been made in the forecast for scheduled maintenance in all regions and for typical seasonal supply outages (including hurricanerelatedstoppages)inNorthAmerica.Inaddition,fromMay2011,anationallyallocated(butnotfield specific) reliability adjustment has also been applied for the nonOPEC forecast to reflect a historical tendency for unexpected events to reduce actual supply compared with the initial forecast. This totals 200kb/d for nonOPECasawhole,withdownwardadjustmentsfocusedintheOECD.
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mb/d 32 31 30 29 28 27
May
2011
Jul
Sep
2012
Nov
Jan
2013
26 1Q 2Q 3Q 4Q
2012 2013 2014 SaudiArabiaincreasedproductionto10.19mb/dinAugust,thehighestlevelin32years.Julyproduction was revised up by 200 kb/d, to 10 mb/d. Increased shipments are reportedly going to Asia, partly to replacereducedsuppliesfromtheFSUstemmingfromrecordrefiningrunscurtailingexportsandoilfield maintenance work as well as lower output in China in recent months due to flooding. Saudi officials reported actual supplies to the markets were slightly lower, at 10.07 mb/d, with the remaining 120 kb/d either going into storage or being fed into the new Jubail refinery network. Production from the new heavy oil offshore Manifa field is reportedly moving into storage at the Jubail refinery, which is currently processinglighterSaudisgradesuntilthecokerisbroughtonlinein4Q13. Saudi crude for direct burn averaged around 595 kb/d in June, down about 185 kb/d from year ago levels,latestJODIdatashow.Demandforcrudeforpowerusethisyearhasbeenreducedbyanincrease in use of natural gas and fuel oil. Crude for direct burn at power plants for 1H13 is down 50 kb/d to an average415kb/dcomparedwiththesameperiodin2012.
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Iraqi crude oil output edged higher in August, up by just over 100 kb/d to 3.17 mb/d. July output was revised up by 70 kb/d to 3.06 mb/d, largely due to higherthanforecast crude burn at power stations. Total exports rose about 165 kb/d to 2.47 mb/d in August, with southern shipments exceptionally robust while northern volumes remained constrained. Exports of Basrah crude rose by 140kb/d to 2.29mb/d as State Oil MarketingCo (SOMO) ramped up volumes aheadof planned maintenance work atthesouthernBasrahandKhorAlAmayashippingterminalsinSeptember.
mb/d 3.4 3.2 3.0 2.8 2.6 2.4 2.2 Jan Mar 2010 May Jul 2011 Sep Nov 2012 Jan 2013
Conflicting reports for the outlook for southern exports in September and through the end of the year have forced traders and refiners to seek replacement barrels, especially in Asia where 70% of Basrah crude is normally processed. Officials initially told regular buyers that planned infrastructure work at the Gulf export terminals would cut shipments by as much as 500 kb/d in September but reversed course in midAugust and said the project would be postponed. However, contractors said in September it was not possible to scale back and alter plans for the terminal work. That said, the 8September work start date has been delayed 45 days due to unexpected technical issues. SOMO nominations were cut to 1.8 mb/d from 2.3 mb/d, or about 500kb/d. Amid all the confusion regular buyers of Iraqi crude are lining up alternative supplies, which in turn has elevated price differentials for competing crudes such as Urals, Azeri and other sour grades in Europe as well as Middle East gradessuchasAbuDhabisMurban. Northern exports of Kirkuk crude were only marginally higher in August, up around 25 kb/d to 180kb/d. Militant attacks on the key pipeline running to the Mediterranean port of Ceyhan continue to disrupt export flows, with volumes nearly halved from a 2013 peak of 330 kb/d in March. In addition, shipments from the Kurdistan region to the KirkukCeyhan crude pipeline remain shutoff. The ongoing dispute over payment and contract terms between Baghdad and the Kurdistan Regional Government(KRG)hasbeencomplicatedbytheKRGsdecisiontogoaheadwithnewpipelineprojects to let exports bypass the KirkukCeyhan line controlled by the central government. A further 4050kb/d of crude and condensates is moving via trucks through Turkey. Crude production in the KRGareawasestimatedat140kb/dinAugust. Irans crude oil production rose to 2.68 mb/d in August, up 30 kb/d from July levels. Preliminary data showtotalcrudeimportsfromIranaveraged985kb/dinAugust,upjustunder100kb/dfromJulylevels. Data for July imports were revised down to 900 kb/d compared with 1.16mb/d reported last month. In August China, Japan, South Korea, Turkey, the UAE and Syria imported Iranian crude, tanker data show. Import volumes are based on data submitted by OECD countries, nonOECD statistics from customs agencies, tanker movements and news reports. After payment problems stalled liftings in July, preliminary data show India posted the largest monthonmonth increase in August, up 125 kb/d to around 165 kb/d. Japanese imports from Iran rose by about 50 kb/d to 225 kb/d in August while China increased volumes to 440kb/d from around 400 kb/d in July. Last month, Syria imported crude for the thirdtimethisyear,ataround30kb/d.
0.0 Jan 12 Apr 12 Jul 12 Oct 12 Jan 13 Apr 13 Jul 13 Far East Europe US
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Washington extended sixmonth waivers of US sanctions in early September to Japan and the ten EuropeanUnionnationsalsoalreadyoperatingundertheEUsJuly2012embargo.TheStateDepartment willreviewwaiverstoChina,India,SouthKorea,Turkey,andfiveothercountriesinDecember.
Production from Kuwait and the UAE each declined by 30 kb/d in August, to 2.77 mb/d and 2.72 mb/d, respectively.Qatarioutputwasunchangedat725kb/d.
Jun 2013 Supply Algeria Angola Ecuador Iran Iraq Kuwait2 Libya Nigeria3 Qatar Saudi Arabia2 UAE Venezuela4 Total OPEC 1.12 1.78 0.52 2.70 3.05 2.82 1.15 1.88 0.73 9.65 2.73 2.50 30.62
Jul 2013 Supply 1.15 1.73 0.52 2.65 3.06 2.80 1.00 1.92 0.73 10.00 2.75 2.47 30.77
Aug 2013 Supply 1.12 1.70 0.52 2.68 3.17 2.77 0.55 1.90 0.73 10.19 2.72 2.47 30.51
Sustainable Production Capacity 1.18 1.89 0.53 2.97 3.33 2.90 1.40 2.25 0.75 12.40 2.90 2.60 35.10
1
Spare Capacity vs Aug 2013 Supply 0.06 0.19 0.01 0.29 0.17 0.13 0.85 0.35 0.03 2.21 0.18 0.14 4.59 2.94
1H13 Average Crude Supply 1.15 1.76 0.51 2.69 3.10 2.82 1.34 1.97 0.73 9.41 2.69 2.48 30.63
Ecuadors production averaged 520 kb/d in August. Increased output is due to reconditioning of wells andincreaseddrillingofhorizontalwells,whichhasledtoanupwardbaselinerevisionof20kb/dfrom MaytoJuly.VenezuelanproductioninAugustwasunchangedat2.47mb/d.
NigerianoutputedgedlowerinAugust,off20kb/dto1.9mb/d.Productionhasstayedbelow2mb/dfor the fifth consecutive month due to escalating oil thefts damaging pipeline infrastructure. In early September ENI lifted the force majeure on its Brass River crude oil production that had been in place since last March. Bonny Light exports remain under force majeure since April, affecting about 150kb/d. ExportloadingschedulesindicatevolumesshouldstarttorecoverinOctoberandNovember.
Angolan crude output declined by 25 kb/d to 1.7 mb/d in August. The lower output stemmed from outages at the Saturno field, part of the 150 kb/d PSVM project. As a result, BP declared force majeure onitsSaturnoexportson21Augustduetotechnicalproblems.
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In late August, Libya's largest western oilfields were closed after militants shut down the pipeline linking the fields to the ports. The two major fields affected were Elephant and El Sharara, which have a combined capacity of around 500 kb/d. After reaching a 2013 high of 1.42 mb/d in April, production has steadily was averaging 250 kb/d in the first week of September. Thiscomparestoanaverageof1.4mb/din2012,460kb/din2011and1.55mb/din2010,precivilwar. The government has set up a crisis committee tasked with negotiating a settlement among the various striking workers and tribal militias in a bid to get the oil sector functioning again. The head of the government energy committee, however, said little headway had been made between government and tribal mediators as well as with an array ofprotestgroups. The strikingworkers and disgruntled civilians are demanding a multitude of changes, ranging from improved pay packages and management changes to a share of the revenues and greater regional autonomy, which have combined to complicate the already challengingnegotiations.
2010 Crude Oil NGLs Total 1550
111
2011 458
27
2012 1387
89
LibyanCrude andNGLProduction(kb/d) Jan13 Feb13 Mar13 Apr13 1380 99 1479 1400 99 1499 1360 99 1459 1420 90 1510
1661
485
1476
Aside from the offshore exports, Libyan terminals have been shut by port worker strikes or following occupation by members of the Petroleum Facilities Guard. Newswire reports in late August indicated that theMarsaalBregaandMarsaalHarigaterminalswouldreturntonormalbyearlySeptemberprovedoverly optimistic, and recent tanker tracking data do not support these claims. Indeed, according to tracking data, the last crude cargo to leave Libya was a 700 kb Aframax tanker which left the offshore Bouri terminal on 20August,boundforItaly.Previoustothis,thelandbasedZaiwaterminalwasexportingregularcargosuntil 19 August. The countrys main crude export terminal at Es Sider last exported a cargo on 26July when an AframaxleftforSpain. Thecountrysfivedomesticrefinerieswithacombinedcapacityof378kb/dhaveonlyoperatedsporadically since the civil war, with prolonged shutdowns reported. The largest refinery, the 220 kb/d Ras Lanuf plant, has also been closed due to worker protests and the lack of crude, as did the 120 kb/d Zawiya refinery. Latest estimates of Libyan refinery crude throughputs were around 120 kb/d in July, with the remainder of thecrudeexported. Recent import data indicate that the bulk of Libyas crude exports head to OECD member countries, with OECDEuropetakingjustunder900kb/dsofarin2013(JuneisthelatestmonthforwhichOECDimportdata areavailable).Todate,ItalyhasbeenLibyaslargestcustomer.AlargeproportionofLibyasexportsareused byrefinersintheMediterraneanbasinorinotherEuropeancountrieswithpipelineaccesstoMediterranean importterminals.AustraliaistheonlyOECDmembertakingsignificantlonghaulLibyanvolumes,althoughit hascutimportssteadilysinceFebruary.
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(continued)
Outside of the OECD, recent tanker tracking data indicate that so far in 2013, sporadic cargoes of Libyan crudehavebeenoccasionallyheadingtoAsia,notablyChina,IndonesiaandThailand.
OECDCrude ImportsfromLibya(kb/d) 2009 131 167 413 102 37 135 986 1049 2010 210 147 368 138 55 168 1086 1140 2011 64 56 96 23 15 38 293 312 2012 128 173 288 98 59 167 914 1018 Jan13 134 170 273 92 0 243 912 970 Feb13 147 190 219 109 86 206 956 1026 Mar13 114 195 218 57 97 121 803 929 Apr13 92 197 223 57 96 110 775 858 May 13 127 183 302 96 79 144 930 1043 Jun13 135 203 216 67 59 130 811 948
% oftotalcrude imports(2012) 11.2% 9.2% 20.9% 8.3% 5.5% 3.7% 8.2% 3.7%
Since Libyan crudes are light and sweet in nature, they have high yields of gasoline, lowsulphur diesel and jet fuel, which make them highly soughtafter by European refiners. They are also difficult to replace since there are few crudes of similar quality. The closest qualityreplacementcrudesforthelostLibyanstreams Selected Crude Oil Export Streams 3.0 by Quality of Es Sider, Sarir, El Shahara and Bu Attifel are Ekofisk Basrah Light and Brent crudes from the North Sea, BTC Blend from 2.5 the FSU, Bonny and Qua Iboe from Nigeria and Arab Kirkuk 2.0 Medium Algerian Saharan Blend. In the last few month, due to Arab Light seasonal maintenance in the North Sea, the output of 1.5 Ekofisk and Brent has been constrained, helping to Arab Extra Light 1.0 propel North Sea Dated prices to their recent highs. It Brazil Roncador is also worth noting that during the 2011 Libyan civil Es Sider Forties 0.5 Brent Cusiana Saharan Qua Iboe war European refiners were forced to turn to Bonny Blend Sarir 0.0 incremental sour supplies made available by OPEC Bu Attifel BTC El Shahara members,notablySaudiArabia,whichwerenotalike 28 32 36 40 44 48 API forlike replacement for lost Libyan crudes. Additionally, the increasing sweetsour differentials over 2011 also drew in limited supplies to Europe of light, sweet Latin American and West African crudes, which would otherwise have been used by US Gulf Coastrefiners.
% Sulphur
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Non-OPEC Overview
Total nonOPEC supply fell by an estimated 510kb/d in August, mostly on declines in the North Sea and in China, but at 54.5mb/d it remained 1.5mb/d higher than a year earlier. Despite extensive maintenance and outages in the North Sea and, to a lesser extent, offshore Brazil, as well as floods in China, nonOPEC supply is projected to have increased by about 520kb/d in 3Q13 on the previous quarter. While the increase partly reflects seasonal gains in biofuel supply, other nonOPEC supply still managed an increase of nearly 190kb/d for the quarter. NonOPEC supply growth is forecast to pick up momentum in 4Q13. As in previous editions of this Report, North America has been at the centre of recent quarterly nonOPEC supply gains, with Canada and the US having a combined total liquids growth of 510kb/d in 3Q13. Strong increases in these two countries in both US LTO and Canadian synthetic crudeoilareexpectedtocontinuethrough4Q13. Political turmoil in the Middle East and North Africa mb/d Total Non-OPEC Supply, y-o-y chg remains a focus of concern for the supply outlook. 2.0 AlthoughSyriasoilproductionhasbeenreducedtoonly 1.5 a small fraction of that countrys precivil war output for 1.0 some time, concerns that the conflict could spill over 0.5 into other countries of the region have affected the oil market. Yemen, another nonOPEC producer in the 0.0 Middle East, experienced several attacks on pipelines -0.5 that temporarily curtailed the countrys alreadyreduced -1.0 output in the last few weeks. The political turmoil in 1Q10 4Q10 3Q11 2Q12 1Q13 4Q13 3Q14 Egypt has so far not affected the countrys Other North America Total approximately 700kb/d of production but concerns remain,especiallygivenarecentfailedattackonacontainershipintheSuezCanal(seePricessection). Legitimate as they may be, however, those concerns are somewhat offset by the outlook for generous nonOPEC output growth for the remainder of 2013. That outlook reflects a variety of factors, including the end of the North Sea and North American maintenance season, improved export certainty for South Sudan and, broadly speaking, the results of massive investment in nonOPEC supply not just in North AmericabutalsoinplacesrangingfromoffshoreBraziltoKazakhstan. Furthermore, sustained high prices look set to keep this investment wave going. Global E&P spending is poised to reach $678 billion in 2013 according to Barclays Capital, a fourth consecutive record high (thoughitmustbementionedthatcostsarealsorising,particularlyoncomplexprojects).Continuedhigh prices are perhaps even beginning to crack open traditional strongholds of resource nationalism to foreign investment. It is conventional wisdom that high oil prices give oil exporter governments increased leverage with IOCs. In recent years, this has discouraged investment in host countries and pushed it to highercost, openmarket economies such as the US. But, as noted by some industry observers, we may now be witnessing the beginning of a reverse effect: as highcost production in non conventional, deepwater and extreme environments becomes more economically viable, leverage swings back to companies which now have alternatives to conventional plays wherein governments grant low rates of return. As discussed below (see Mexicos Proposed Energy Sector Reforms a Watershed for the Energy Industry?), this forces some host countries to compete to maintain or regain market share and attract investments. In any case, we continue to foresee nonOPEC supply growth in the forecast period as past investment comes to fruition, and we have adjusted our outlook for non OPECsupplyupwardby60kb/dfor2013andby260kb/dfor2014.
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1.05mb/d, also reached a new record, as several plants returned from June and July maintenance and work on Suncors upgrader 2 unit was delayed until September. Crude oil production (excluding synthetics but including mined bitumen) is forecast at 2.4 mb/d for 3Q13, up by more than 300kb/d yoy. Maintenance offshore Newfoundland began in June, cutting production of Hibernia by 50 kb/d for that month, and White Rose output by 10 kb/d in July. Extensive maintenance on the Terra Nova FPSO (whichproduced60kb/dinJuly)beganthismonth. Canadian Oil Sands Output Given the record output of synthetic crude oil, including mb/d Suncorsprojectsexceeding400kb/dforthefirsttimeever 2.5 in August, our forecast for Canadian total liquids 2.0 production has been increased by over 80 kb/d for 2014 1.5 compared with last months Report. Total Canadian supply is now expected to reach an average of 4.2mb/d for 2014 1.0 (a 200kb/d yoy rise). In anticipation of this and other 0.5 output increases, one investment bank has calculated that total planned capital spending on rail terminals, tanker 0.0 1Q11 1Q12 1Q13 1Q14 cars, and associated infrastructure in Western Canada in Synthetic Crude In Situ Bitumen theyears20142015willreachabout$5.7billion. Mexico July actual: Pemex data shows that crude oil production in July was 2.48mb/d, a decline of about 40 kb/d mom. Weekly numbers show the mainstay offshore KMZ complex 30 kb/d lower for the month. Our expectation is of continued gradual decline in crude oil production until the end of the forecast period, with 2013 down 40kb/d yoy and 2014 50kb/d lower. The decline is expected to be halted only in the last quarter of 2014, as Pemex plans to have a record 47 jackup rigs in place in the shallow water GOM by mid2014. Pemex has had some success drilling in the deepwater Perdido fold beltplay,whereithasdiscoveredanestimated480millionbarrelsofoil,butlastmonththegovernment announcedaprogramofreformsintheenergysectordesignedtoincreaseoilproductioninthemedium termthatwould,ifsuccessfullyimplemented,bringothercompaniestotheMexicandeepwater. Mexicos Proposed Energy Sector Reforms A Watershed for the Energy Industry?
On 12 August 2013, Mexican President Enrique Pea Nieto announced plans to change the countrys constitution (which greatly restricts foreign and privatesector participation in the energy sector) so as to allowanumberofproposedreformstotheoilandgas,aswellaselectricity,sectors.Mexicosoilsectorhas been famously closed off to nonPemex ownership participation since 1938, when foreign oil companies were expropriated by the state and the 100%stateowned oil company Petrleos Mexicanos (Pemex) was created. Pemex became the countrys largest company, and has since then singlehandedly developed Mexicoslargeoilandgasindustry. These reforms, in terms of the oil sector, do have the potential to change the production outlook for the country if things go according to the governments plans. While we will not release another Mediumterm OilMarketOutlookuntilnextyear,thesuccessfulimplementationofthemainreformsbelowwouldbeakey factorinliftingouroilproductionoutlookforthelatterhalfofthisdecade.Intermsofthereformsdelivering economic benefits for Mexico, any reduction in revenues in the short run from Pemex has to be balanced withtheneedtomaintain,ifnotexpand,oilderivedrevenuesinthelongrun. Although Mexico became a net importer in the 1950s, new discoveries in the 1970s and their successful exploitation, including thegiant Cantarell field, subsequently made the country a major world producer and exporter. Pemex is also one of the most important contributors to the budget of the federal government, providing about 40% of receipts in recent years. However, since 2004, oil production has declined while domestic consumption continues to grow, eating into net exports. Deprived of much of its oil revenues, Pemex has been forced to take on large amounts of debt. The company also maintains a monopoly in the downstreamsectorextendingtoretailsales.
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MEXICO
Gulf of Mexico
MEXICO
Selected wells Major oil and/or gas pipeline
This map is without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
Figure1Source:IEA
Geology, of course, does not observe national borders, and the shale boom that has transformed the US oil andgasindustryhassofarpassedMexicoby.FormationssuchasEagleFordinTexas,whichproducessome 1mb/doflighttightoilandlargeamountsofgas,extendintoMexico(theBoquillasformationintheBurgos Basin), yet only a small amount of gas has been developed for production by Pemex on the Mexican side of theborder(seeFigure2),withmostwellsstillintheexploratorystage. Given the need for expertise and investment to develop deepwater and shale resources, as well as more generally to enhance the sector (including the downstream), the government has proposed a number of concretereformsaimingto: Achievereplacementratesforprovenreservesofoilandgasinexcessof100% Obtaincrudeoilproductionof3mb/dby2018and3.5mb/dby2025 Obtain natural gas production of 226 million cubic metres per day (mcm/d) in 2018 and 295 mcm/d in 2025(2012productionwas130mcm/d) Thefollowingarethemainreformproposalsaffectingtheoilsector: Companies other than Pemex would be allowed to participate in the sector through the use of profit sharing contracts [contratos de utilidad compartida] that would not give companies explicit ownership of reserves but rather a revenue share from the government. Such contracts are expected to give a better rate of return than service contracts that are currently available and allow companies to report them in theirfinancialstatementsasassetswithexpectedcashflows.
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Gulf of Mexico
Tampico Basin
This map is without prejudice to the status of or sovereignty over any territory, to the delimitation of international frontiers and boundaries and to the name of any territory, city or area.
Figure2:MapbasedinpartonUSEIA/AdvancedResourcesInternationalInc.assessment
Pemex would be restructured from four divisions into two: Exploration and Production, and Industrial Transformation, which correspond to the upstream and downstream sectors. A relatively small overarching corporate executive office would remain. Exploration and Production will compete with other companies for contracts on projects,but would remain 100% stateowned. All subsoil assets would also remain stateowned, even with other companies participating in and operating upstream projects. Industrial Transformation would see its sector opened up to privatesector companies in all areas, and these companies will be able to own assets in the sector, from pipelines to retail gasoline stations. How thiswillworkinthecontextofregulatedpetroleumproductpriceshasyettobespecified. Pemex would have a new fiscal regime that involves a lower government take (e.g. lower royalty rates) andamoreflexibleschemesothatPemexcanreinvestadequately.Anysurplusthatremains(becauseof the lower initial payment) could be used for reinvestment in thecompanyor be usedfor social spending, withthegovernment,andprobablytheCongress,makingacostbenefitassessment.Thefiscalregimefor otherupstreamcompanieswoulddependontheircontract. Regarding Exploration and Production, Pemexs role would be redefined to focus on its own operations rather than the management of the entire sector. Some functions would likely be transferred to the MinistryofEnergyandtheNationalHydrocarbonsCommission. The proposal also discusses increasing the transparency of the sector in general, and of Pemex in particular. ThecreationoftwoadditionalfunctionaldepartmentsfortheoverarchingPemexexecutive,Procurement and Logistics. These two areas would use synergies and eliminate duplication in order to improve purchasing and relations with suppliers. Logistics for the company will be integrated and there will be increasedtransparencyintransportandstoragecosts. It is clear that, if the necessary constitutional changes are approved, there is a great deal of secondary legislation and regulations that would need to be put into effect in order to enable these reforms to be implemented.Thedetailsofsuchlegislationcanhaveanimportanteffectonhowthereformwouldactually beimplementedandwhetheritnotonlyexpandsproduction,butalsodeliverseconomicbenefits.Thereare alsoanumberofpoliticalhurdles,withthegovernmentneedingthesupportofatleastoneofthetwoother major political parties in order to pass the necessary legislation (and opposition parties have put forward their own proposals). There are still many issues to be resolved, then, before the governments $10 billion targetinadditionalannualinvestmentintheoilsectorthrough2025canbeachieved.
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S UPPLY
North Sea
PreliminaryproductionfiguresindicatethatNorwegiantotalliquidsproductionexceededexpectationsin July, rising by about 270kb/d to nearly 2mb/d as Teeside fields came back online and NGL production reached its highest level since December 2012, at over 310kb/d. Maintenance both planned and unplanned is expected to take August total liquids production back down to 1.5mb/d, however, including crude oil production of 1.2mb/d. On the SleipnerFrigg system, Marathon shut the Alvheim field for nine days of maintenance, as well as the Vilje and Volund fields feeding into the Alvheim FPSO. Statoil has announced that equipment problems at Troll have not been resolved, affecting mostly gas output, but also NGL and condensate output on Norways largest gas field. The Kvitebjorn gas field, another significant producer of NGLs and condensate, remained offline for most of August because of equipment problems when returning from scheduled maintenance that had begun in July. Visund in the StatfjordGullfaks area also had an unplanned outage in August. Hence, 3Q13 total liquids production is forecastat1.7mb/d,about50kb/dlowerthan3Q12,andproductionfortheyearisexpectedtobeover 100kb/dloweryoy. TheUKsector,ontheotherhand,lookssettodeclineevenfasterinpercentagetermsin2013.Asnoted in a recent report by industry association Oil & Gas UK, platforms in the UK offshore oil and gas sector have only been producing about 60% of the time in recent years, compared to 80% of the time in 2004, due to the need for greater maintenance and the increased incidence of unplanned outages. Another important factor affecting output is that when mature fields come back from maintenance or other outages, they take longer on average to ramp up production again. Although new fields are being developed or redeveloped, such as Balloch and Gryphon that came online in May, and Alma now expectedfor1Q14,thesearecomparativelysmall(10kb/d,20kb/dand20kb/d,respectively)andfailto offset steep declines at many mature fields. Alma has been delayed by a quarter. July crude oil productionisexpectedtobeabout800kb/d,a3%increaseonJune.However,outagessuchasafiveday shutdown of the Forties pipeline at the beginning of August and technical problems that halted production at Huntington, as well as other planned maintenance, indicate lower production for 3Q13, such that total liquids will fall by about 100 kb/d compared with 2Q13, and 20kb/d below 3Q12, to just under800kb/d. BFOE production is estimated at 720kb/d for BFOE Loadings & Production August and 770kb/d for September. Although 1,100 loadings in the past have often lagged production 1,000 levels by a month, lately loadings have more 900 closely matched the same months production. 800 However, a number of delays to loading programmes for August and September, and 700 alreadyannounced revisions to the October 600 schedule, show that initial loading plans are still 500 not always indicative of actual production figures May-12 Sep-12 Jan-13 May-13 Sep-13 for the month. Scheduled September BFOE BFOE loadings* BFOE production *Source: Reuters loadings have already been revised downward by 60kb/d.BFOEhasremainedwellbelow900kb/dsinceJune,puttingpricepressureontheBrentmarker.
12 S EPTEMBER 2013
27
S UPPLY
2013. (About 93% of Brazilian oil production is operated by Petrobras.) Production declines in July stemmed in part from Marlim Sul, Brazils largest oilfield, which declined by 40kb/d mom, as the P40 platform had 15 days of scheduled maintenance. A mb/d Brazil -Total Supply number of other offshore fields had smaller drops. 2.60 Despite steady output of total liquids in 3Q13 compared with2Q13s2.1mb/d,westillexpect4Q13toshowstrong 2.40 growth of nearly 150kb/d. The Cidade de Paraty FPSO in operation on the Lula field is expected to add another 2.20 40kb/dby4Q13.Otherprojectstoaddproductioninclude 2.00 the Papa Terra P63 FPSO expected to come online in October and the P55 platform on the Roncador field in 1.80 Jan Mar May Jul Sep Nov Jan December. In August, a Canadian company began the first 2011 2012 test drills of a shale oil play in Brazil at the onshore 2013 2014 forecast 2013 forecast Recncavobasin.
Asia
China July preliminary: After yoy 1H13 growth of nearly 90kb/d, Chinese oil production slumped by 200kb/d mom in July to 4.1mb/d as a massive flood in Shaanxi affected PetroChinas (CNPC) Changqing field as well as production from Chinas fourthlargest oil company, Shaanxi Yanchang Petroleum, which has its base of operations in the mb/d China Total Supply province. A major CNPC oil pipeline ruptured as well 4.4 because of the floods. It is expected that production will show a further drop in August, as major floods in 4.2 Heilongjiang province affected Chinas largest oilfield, Daqing. About 1300 wells were shut down on the field, 4.0 and 680 new wells will have their production start delayed. August production is forecast to fall to just 3.8 under 4.0mb/d, marking the first time since October Jan Mar May Jul Sep Nov Jan 2011 that production has fallen below this level. CNOOC 2010 2011 2012 2013 forecast continues to invest in smaller offshore fields such as 2013 Weizhou 128W and Wenchang 191N in the Western South China Sea, and the Suizhong 361 Phase II and Qikou 181 projects in Bohai Bay. These developments, which are expected to come online in 4Q13, will compensate in part for continued declinesatmatureonshorefields.
Africa
SouthSudan:SincelastmonthsReport,economicandpoliticalagreementshavebeenreachedbetween thegovernmentsofSouthSudanandSudan(3September)suchthattheexportpipelinetotheSudanese oil terminal at Port Sudan is expected to remain open and unimpeded. Crude oil production in South Sudan had been cut to about 140 kb/d prior to 3 September agreement in order to protect equipment and reservoirs in anticipation of a possible pipeline closure. South Sudan government ministers have announced that production will quickly ramp up to 200 kb/d by October and eventually 350 kb/d by the end of 2013. However, given the various rapid shutins for political reasons and other lessthan optimal treatment of field reservoirs historically, this target may be overly optimistic in the absence of additional investment. Hence, we are forecasting a more gradual rampup in the coming months. Another positive development for greater oil flows is that the two governments seem to have resolved payment issues, and South Sudan has reported that it has received $300 million from Sudan for crude sales since April. South Sudan, however, continues to explore potential alternative new pipeline export routesthroughneighbouringcountriestothesouth.
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29
S UPPLY
2011 Crude Black Sea Baltic Arctic/FarEast BTC Crude Seaborne Druzhba Pipeline Other Routes Total Crude Exports Of Which: Transneft1 Products Fuel oil2 Gasoil Other Products Total Product Total Exports Imports Net Exports
Sources: Argus Media Ltd, IEA estimates
1 2
2012 1.81 1.67 0.65 0.66 4.79 1.08 0.52 6.39 4.22 1.72 0.79 0.44 2.95 9.34 0.09 9.25
3Q2012 4Q2012 1Q2013 2Q2013 1.74 1.78 0.64 0.64 4.80 0.98 0.53 6.31 4.24 1.83 0.76 0.45 3.04 9.35 0.08 9.27 1.78 1.69 0.72 0.59 4.78 0.98 0.54 6.30 4.10 1.61 0.79 0.47 2.87 9.17 0.09 9.08 1.80 1.60 0.78 0.58 4.76 0.99 0.55 6.31 4.09 1.61 0.97 0.48 3.06 9.36 0.07 9.29 1.80 1.68 0.80 0.71 5.00 1.02 0.54 6.55 4.15 1.83 0.87 0.48 3.17 9.73 0.06 9.67
May 13 Jun 13 1.77 1.64 0.83 0.74 4.98 1.04 0.52 6.54 4.13 1.68 0.84 0.44 2.96 9.49 0.06 9.44 1.78 1.40 0.77 0.73 4.68 1.04 0.52 6.25 3.90 2.04 0.92 0.49 3.45 9.70 0.06 9.64
Jul 13 1.80 1.35 0.81 0.70 4.65 1.08 0.56 6.29 3.91 1.98 0.88 0.56 3.42 9.71 0.07 9.64
Latest month vs. Jun 13 Jul 12 0.02 -0.05 0.04 -0.03 -0.03 0.04 0.03 0.04 0.01 -0.06 -0.04 0.07 -0.03 0.01 0.01 0.00 0.06 -0.29 0.19 0.02 -0.02 0.14 0.04 0.16 -0.13 0.22 0.18 0.18 0.58 0.74 0.00 0.74
1.93 1.50 0.67 0.70 4.80 1.17 0.53 6.50 4.18 1.58 0.77 0.43 2.77 9.27 0.09 9.18
FSU net exports remained flat with the previous months low level at 9.64 mb/d in July but are set to rebound steeply in September and October as Russian refineries embark on heavy maintenance. Crude exports in July edged up marginally by only 40kb/d to 6.3 mb/d as domestic refinery throughputs remained strong, reducing the availability of crude for export. Accordingly, most major export routes experienced little or no monthly growth. One bright spot was the Druzhba pipeline where flows hit 1.1mb/d, their highest since May 2012. On the other hand, deliveries of Urals via Russias Baltic ports remained depressed at 1.1 mb/d (50 kb/d mom), their lowest since August 2011. Recent port loading schedules indicate that volumes were similarly constrained during August with a rebound not expected untilSeptember,whenvolumesaresettosurgeto1.6mb/dasRussianrefineriesenterturnarounds. ESPO Exports to China via Komino kb/d In the East, Rosneft has begun to ship extra crude to 700 China under the terms of its recently inked supply deal 600 (see A New Supermajor: How the TNKBP Acquisition 500 Could Affect Trade Flows, in OMR 11 April 2013). ESPO 400 shipments(ChinesespurplusKozmino) reachedarecord 300 800 kb/d in July with approximately 500 kb/d destined 200 for China. The ESPO spur accounted for a record 340kb/d of this with tanker tracking data indicating an 100 0 additional 160 kb/d left Kozmino for Chinese ports. This Jan-10 Jan-11 Jan-12 Jan-13 represented35%oftotalcrudeexportsviatheport. China Total Kozmino source:ArgusMedia Ltd,LloydsMarineintelligence Refinedproductexportsdroppedby30kb/dcomparedtoJuneledbyfallsingasoil(40kb/d)andfueloil (60 kb/d) after domestic demand rose. Nonetheless, product exports remain a healthy 600kb/d above July2012asanumberofrefineryexpansionprojectshavebeencompletedintheinterveningperiodwith Russianrefinerythroughputsremainingatclosetorecordlevels. Shipmentsofotherproductsincluding gasolineandnaphthaincreasedby70kb/dto560kb/d,theirhighestsinceMay2011.Thispromptedthe Russian administration, mindful of a return to the light product shortages which blighted the country in summer2011,toaskdomesticoilcompaniestobuildstockoflightproductsandtoconsidertheneedsto domestic markets ahead of export markets. Although there has been no export ban, this development couldcurbshipmentsoflightproductsovercomingmonths.
Transneft data exclude Russian CPC volumes. Includes Vacuum Gas Oil
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OECD S TOCKS
OECD STOCKS
Summary
OECD commercial total oil inventories built by 8.0 mb to stand at 2659 mb by endJuly. Since this rise was weaker than the fiveyear average build for the month, the deficit of OECD holdings to five yearaveragelevelswidenedto65.0mb,markingthelargestdeficitsinceOctober2011. Refined product inventories built seasonally by 23.4 mb to cover 30.7 days of forward demand at endJuly,ariseof0.6daysonendJuneand0.2daysabovetwelvemonthsprevious. Preliminary data suggest that OECD inventories drew by a counterseasonal 14.2mb in August as a strongerthanseasonal 19.3 mb fall in crude oil stocks outweighed a weakerthanseasonal 5.1 mb buildinrefinedproducts. CrudestocksattheCushing,Oklahomastoragehubplungedbyafurther5.4mbinAugust.Stocksat theterminalnowstandat34.8mb,theirlowestlevelsinceFebruary2012.
mb 100 50 0 950 -50 -100 Jul 11 900 Jan Mar May Jul Range 2008-2012 Sep Nov Jan Avg 2008-2012 2013
mb 1,050 1,000
Jan 12
Asia Oceania Europe
Jul 12
Jan 13
Jul 13
Americas OECD
2012
Crude Oil Gasoline Middle Distillates Residual Fuel Oil Other Products Total Products Other Oils 1 Total Oil
1 Other o ils includes NGLs, feedsto cks and o ther hydro carbo ns.
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OECD S TOCKS
Total OECD refined product inventories built by a seasonal 23.4 mb led by increases in middle distillates (+14.5mb) and other products (+11.5 mb), which offset dips in motor gasoline (1.8 mb) and residual fuel oil (0.7mb). All told, refined products covered 30.7 days of forward demand at endJuly, a rise of 0.6daysonendJuneand0.2daysaboveayearearlier.
Revisions versus 9 August 2013 Oil Market Report
(million barrels)
Crude Oil Gasoline Middle Distillates Residual Fuel Oil Other Products Total Products 1 Other Oils Total Oil
EndJune OECD inventories were revised down by 12.2 mb compared to data presented in last months Report. The revision was concentrated in US crude oil inventories where final monthly data came in 8.2mb lower than preliminary data suggested. Elsewhere, OECD European inventories were adjusted downwardsby3.6mb/dwhileAsiaOceaniawasrevised0.9mbhigher. Preliminary data suggest that OECD inventories drew by a counterseasonal 14.2mb in August as a strongerthanseasonal 19.3 mb fall in crude oil stocks outweighed a weakerthanseasonal 5.1 mb build in refined products. Indeed, if this slight build in products is confirmed by final data, it would be far weaker than the 21.2 fiveyear average build for the month. Product holdings rose following the continued restocking of middle distillates, although the 3.7 mb rise was weaker than the 18.1 mb average build for the month. Meanwhile,other products rose by a seasonal 7.4 mb and motor gasoline drew by a seasonal 5.6 mb. On a geographic basis, OECD Asia Oceania posted a slight 0.9 mb rise while OECDEuropeandOECDAmericaspostedcounterseasonaldrawsof14.4mband0.6mb,respectively.
days 32 30 28 26
24 Jan
OECD Americas
Industry inventories in OECD Americas drew by 6.8 mb in July in sharp contrast to the 13.1 mb fiveyear average build for the month. Stocks were led lower after crude oil holdings plummeted by 19.0 mb as regional refiners, notably in the US, responded to healthy margins by raising runs. Regional throughputs were also augmented by the return to service of a number of refineries, notably BPs Whiting refinery in the midcontinent. In all, regional holdings of crude, NGLs and feedstocks plunged by a combined
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OECD S TOCKS
22.0mb, far stronger than the 3.8mb fiveyear average draw for the month. Despite the stock draw, regionalholdingsofprimaryfeedstocksremain6.0mbabovefiveyearaveragelevels. Higher refinery throughputs did not translate into a commensurate build in refined products, stocks of which increased seasonally by 15.2 mb. In addition to seasonally higher demand, it is likely that product builds were tempered by continued high exports from the US which, according to preliminary data, remained close to 3 mb/d during July. Nonetheless, the build in products was driven by the continued seasonal restocking of propane (+10.1mb) here included under other products, inventories of which now stand 21.6 mb above average levels. Excluding other products, inventories of other refined products stand 10.2mb in deficit to average levels. Other builds were posted in middle distillates (+4.1mb) and motor gasoline (+1.4 mb) while fuel oil holdings inched down by 0.4 mb. At endJuly, regionalrefinedproductsstockscovered29.9daysofforwarddemand,0.7dayaboveendJune.
mb 410 390 370 350 330 310 290 270 Jan Apr Jul Range 2008-2012 2012
Source: EIA
mb 60 50 40 30 20
10 Jan
Source: EIA
2012 2013 Preliminary weekly data from the US Energy Information Administration indicate that US industry total oil inventories slipped by a further 0.6 mb over August. The same pattern of high refinery throughputs drawing down crude stocks while strong seasonal demand and exports kept product builds in check was evidentoverthemonth.Assuch,inventoriesofcrudeoil,NGLsandotherrefineryfeedstocksdeclinedby a combined 5.1mb, in contrast to a 0.2 mb fiveyear average build. Crude oil declined by a stronger thanseasonal3.3 mbwiththebuild concentratedinPADD2asstocksat theCushing, Oklahomastorage hub plunged by 5.4mb. Cushing stocks now stand at 34.8 mb, their lowest level since February 2012, thanks to high regional refinery throughputs and increasing transfers to PADD 3. Refined product holdings rose by 4.4 mb led by increasing other products which surged by a strongerthanseasonal 8.8mb.Elsewhere,middledistillatesbuiltbyaseasonal4.4mbwhilemotorgasolinedrewbyastronger thanseasonal7.6mb. European Industry Stock Draws in Perspective
Supply outages in the North Sea and Libya and recent low exports of Russian Urals via Baltic ports have cast a spotlight on the tightness of oil inventories in OECD Europe. At endJuly, European commercial inventories stood at 884 mb, 41 mb below 12 months previous and 81 mb in deficit to the fiveyear average for the month. A91mbdeficitpostedatendJunewasthewidestsince IEAmonthlyrecordsbeganin1988.
mb 150 100 50 0
Position of OECD European Commercial Oil Stocks Compared to Five-Year Average Levels
surplus
Looking at the data in more detail, however, part of the -50 deficit deficit can be pinned on the reclassification of 20mb of -100 Austrianstocksbythenationaladministration.These 1988 1992 1996 2000 2004 2008 2012
12 S EPTEMBER 2013
33
OECD S TOCKS
OECD Europe
Commercial total oil stocks in OECD Europe increased by 9.8 mb in July to 884mb. This was much steeper than the 0.1 mb fiveyear average build, narrowing the regions deficit to the average levels to 81mb from a record 91 mb at endJune. An 8.8 mb counterseasonal rise in crude oil holdings drove the monthlyrise,surprisinglygivenhigherregionalrefinerythroughputs,supplydisruptionsinLibyaandIraq andseasonallylowerFSUexports.Regionalcrudeoilholdingsnowamountto311mb,2.6mbbelowJuly 2012 levels and 19 mb below average. However, due to lower refinery throughputs compared to one year ago, forward cover increased yoy: crude stocks covered 26 days at endJuly, 1 day more than in July2012.
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OECD S TOCKS
Refined product holdings built by 1.3 mb on the month, in line with seasonal trends but significantly less than the 4.0mb fiveyear average rise. Due to falling enduser demand, product inventories now cover 37.7 days, 0.3 day above endJune and comfortably within the seasonal range. Product builds were tempered by a 3.1 mb dip in motor gasoline holdings, stronger then the 0.4 mb average draw for the month, after transatlantic trade remained healthy, according to anecdotal reports. Despite this monthly draw, at endJuly gasoline inventories covered 43.8 days of forward demand, 1.5 days above the five year average. Middle distillates inventories rose by a seasonal 4.9 mb, while in Germany consumers continuedtheirsummerrefillingofheatingoilresidentialtanks,liftingfillratesbytwopercentagepoints to57%byearlyJuly.
mb 360 350 340 330 320 310 300 290 Jan Mar May Jul Range 2008-2012
days 43 41 39 37
35 Jan
2012 2013 2012 2013 Preliminary data from Euroilstock indicate that stocks dropped by a counterseasonal 14.4 mb in August withalloilcategoriesexceptmotorgasolinepostingdraws.Crudeoilfellby7.0mb,farstrongerthanthe 0.6 mb average draw for the month while refined products fell by a combined 7.4 mb, in sharp contrast to the fiveyear average 10.7 mb build for August. Middle distillates holdings plummeted by 7.1 mb compared to the 9.1 mb fiveyear average build. Meanwhile, stocks of fuel oil and other products slipped by 0.3 mb and 1.3 mb, respectively. Data pertaining to refined products held in independent storage in Northwest Europe suggest that stocks built during August with all product categories rising exceptnaphtha.
days 25 23 21 19 17 Jan
Commercial inventories in OECD Asia Oceania (excluding Israel) followed a similar pattern to Europe as their seasonal restocking began in July. Total oil stocks built by 5.0 mb, leaving the region at a slight 0.8mbdeficittothefiveyearaverage.A6.9mbbuildinrefinedproductspushedtotalstocksupwardsas middle distillates, residual fuel oil and other products rose by 5.4 mb, 1.3 mb and 0.3 mb, respectively, while motor gasoline retreated by 0.1 mb. Indeed, this underlying trend was evident across Japan and
12 S EPTEMBER 2013
35
OECD S TOCKS
South Korea where all product categories increased except motor gasoline. All told, regional refined products now cover 21.4 days of forward demand, 0.9 days above endJune and comfortably inside the seasonal range. Meanwhile, crude oil slipped by an unseasonal 0.7 mb with the draw concentrated in Japan (3.1 mb). Despite a monthly rise in crude imports, it is likely that these were outpaced by a 280kb/d surge in refinery runs. However, it is also probable that crude stocks were run down at the 140kb/dSakaiderefineryaheadofitspermanentearlyAugustclosure. Preliminary weekly data from the Petroleum Association of Japan (PAJ) indicate that total oil inventories there inched up by 0.9 mb by endAugust. However, this obscured the fact that crude stocks drew steadily over the month so that by endmonth they were 9 mb lower compared with endJune. If confirmed by final data this would be the steepest draw since monthly reporting began in 1988. As in July, it is likely that this draw can be partly explained by the shuttering of the Sakaide refinery as its final stockswerelikelydrawn.Despitethisclosure,Japaneserefineryrunsremainhigh,increasingby140kb/d mom in August. The increased refinery activity translated into a seasonal 8.1 mb build in refined products. All categories rose bar other products (0.1 mb). Notable increases were posted for middle distillates(+6.4mb)andresidualfueloil(+1.2mb).
mb 15 10 5 0 (5) (10)
(15) Jul 12
Crude
Oct 12
Jan 13
Apr 13
Jul 13
Gasoline
Gasoil
Kerosene
*Since August 2010, COGP only reports percentage stock change Data from China Oil Gas and Petrochemicals (China OGP) point to an 11.0 mb decrease in Chinese industryinventoriesinJuly(dataarereportedintermsofpercentagestockchange).Crudeoilinventories declined by 1.6 % (3.5 mb) after refinery throughputs outpaced record crude oil imports (5.97mb/d) whilecrudeproductionwashitbyfloodingattheChangqingfield(seeSupply).Stocksofrefinedproducts fellbyacombined7.5mbasmotorgasoline,dieselandkeroseneholdingsdrewbyanequivalent4.7mb, 2.4mband0.5mb,respectively.
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OECD S TOCKS
Days 60
Americas
Europe
Europe
Asia Oceania
Asia Oceania
Range 2008-2012
1 Days of forw ard demand are based on average demand over the next three months
12 S EPTEMBER 2013
37
P RICES
PRICES
Summary
Oil futures escalated in tandem with rising geopolitical tensions over Syrias suspected use of chemical weapons on civilians at end August. Markets were further supported by the near total shutin of Libyan crude oil fields, terminals and refineries by striking industry workers, security guards andtribal militias.By9September crudeoilpricesreversedcourseafterRussiasproposalforSyriato surrender its chemical weapons gained traction in western capitals, with Brent last trading at around $111.60/bblandWTIat$107.50/bbl. Refiners looking for replacement barrels in the wake of supply shortfalls from Libya, the North Sea and Russia, among other countries, bid prompt prices to relatively lofty levels. The Brent M1M2 futures contract widened to $1.65/bbl in early September compared with around $1.20/bbl in August andjust$0.80/bblinJuly. Spot product crack spreads posted diverging trends in August, with the US partially insulated from the recent surge in crude prices, which compressed crack spreads in Asia and Europe. Gasoline crack spreadsfellinallmajorregionsassummerpeakdemandended,particularlyinAsiaandintheUS. Freight rates for very large crude carriers (VLCCs) experienced another lacklustre month in August as ample tonnage weighed heavily on markets. Furthermore, vessel earnings fell into negative territoryasbunkercostssurgedinlinewithsoaringbenchmarkcrudeprices.
$/bbl 120 115 110 105 100 95 90 85 80 Aug 12
$/bbl 118 116 114 112 110 108 106 104 102 100 98
Source: ICE
M1 2
10 11 12
11 Jul 13 10 Sep 13
10 Sep 12 08 Aug 13
Market Overview
Oil futures escalated in tandem with rising geopolitical tensions over Syrias suspected use of chemical weapons on civilians at end August. Markets were further supported by the near total shutin of Libyan crude oil production by striking industry workers, facility guards and warring militias. Brent futures peaked at a sixmonth high of around $117/bbl on 28 August, while WTI rose just over $110.50/bbl the same day. Prices turned lower on 9 September after Russias proposal for Syriato surrender its chemical weapons gained traction in western capitals, with Brent last trading at around $111.60/bbl, or down about$5/bblfromitsAugustpeak.WTIpostedsimilardeclines,andwaslastquotedat$107.50/bbl. A western military strike against Syria, if it were to occur, would have no direct impact on physical crude oil supplies but the threat of an action has sparked market fears that the conflict will spread in the region. While Syrian crude production has fallen to around 50 kb/d for some time, market attention is focussed on the potential for the Syrian conflict to spread to neighbouring producing countries, such as Iraq,ortodisruptoilflowstotheMediterraneanviakeytransitcountryTurkey.
38
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P RICES
The conflict in Syria has already had a knockon effect in Iraq, where violence has escalated to the highest level in five years as sectarian fault lines deepen. Prime Minister Nuri alMalikis government is largelyviewedasalignedwithPresidentAssadsregimewhileSunnioppositionleadersinIraqarewidely assumedtosympathisewithSyrianrebels.Echoingthefearsofmany,theoutgoingUNenvoytoIraqtold the Security Council that Syrias civil war has already spilled over into Iraq, saying that the battlefields are merging into one conflict, which could destabilize the broader Middle East. Iraqi insurgents have repeatedly attacked the northern KirkukCeyhan pipeline, which runs to the Mediterranean port of Ceyhan,Turkey.ThishascausedexportsfromNorthernIraqtofalltofiveyearlowsofunder200kb/din JulyandAugust,comparedwithpreviouslevelsofcloseto400kb/d.
$/bbl 110 105 100 95 90
Source: NYMEX
Source: NYMEX
M1 2
Markets were also on edge at the end of August after a failed attack on a container ship in the Suez Canal,akeytransitcorridorforcrudeoilandproductsbetweentheMediterraneanandtheRedSea.The ongoing political and civil unrest in Egypt has rattled markets but there have been no direct threats to theSuezCanalorSUMEDpipelineoilflows,whichcarryacombined3.9mb/dofcrudeandproducts.The Egyptianarmysaiditwillguaranteethesafetyofthecanalandpipeline. While the focus of the mainstream news has been on Syria, actual, severe disruptions have curtailed Libyan supplies. Libyas production hit a postwar low of 150kb/d in early September compared with 550kb/donaverageinAugustand1mb/dinJulyamidcripplinglabourdisputes,civilunrestandpolitical turmoil. The government has set up a crisis committee tasked with negotiating a settlement among the variousstrikingworkersandtribalmilitiasinabidtogettheoilsectorfunctioningagainbuttodatethere hasbeenlittleprogress(seeOPECSupply,LibyanOilSuppliesCascadeLower).
$/bbl 2.0 1.5 1.0 0.5 0.0 -0.5 -1.0 Aug 12
Contango
3 4 5 10 Sep 13 08 Aug 13
9 10 11 12 11 Jul 13 11 Jun 13
$/bbl 16 12 8 4 0
Despite supply disruptions and heightened tensions in the Middle East and North Africa, from a supply perspectiveoilmarketsnonethelessstillappearadequatelysupplied.SaudiArabiarampedupproduction to a 32year high of 10.19 mb/d in August. Despite a mom decline of 510kb/d in nonOPEC supply in August,3Q13nonOPECsupplyisexpectedtobeupby1.65mb/dyoy.OECDstocksarecurrentlyabove
-4 Aug 12
12 S EPTEMBER 2013
39
P RICES
year ago levels and refinery activity is trending lower due to seasonal maintenance, tempering refiner demandforcrude.AfterhittingaseasonalpeakinJuly,globalrefinerycrudedemandissettofallsharply throughOctoberwiththeonsetofscheduledmaintenance. The supply outages and the threat Western strikes on Syria propelled prompt prices higher. The Brent M1M2 futures contract widened to $1.65/bbl in early September compared with around $1.20/bbl in August, $0.80/bbl in July and just $0.25/bbl in June. Signalling market expectations of looser markets furtherout,theBrent M1M12alsowidenedfurther inearlySeptember,tonear$11/bblcomparedwith $7.55/bbl in August and $6.15/bbl in July. As expected, the loss of Libyas light, lowsulphur crude has alsohadasignificantimpactonspotpricesforcompetinggrades.
Prompt Month Oil Futures Prices
(mo nthly and weekly averages, $ /bbl)
Jun NYMEX Light Sw eet Crude Oil RBOB No.2 Heating Oil No.2 Heating Oil ($/mmbtu) Henry Hub Natural Gas ($/mmbtu) ICE Brent Gasoil Prom pt Month Differentials NYMEX WTI - ICE Brent NYMEX No.2 Heating Oil - WTI NYMEX RBOB - WTI NYMEX 3-2-1 Crack (RBOB) NYMEX No.2 - Natural Gas ($/mmbtu) ICE Gasoil - ICE Brent
So urce: ICE, NYM EX
Jul
Aug
Aug-Jul Avg Chg 1.84 -1.65 2.37 0.42 -0.23 3.02 2.95 -1.18 0.53 -3.49 -2.15 0.65 -0.07
% Week Com m encing: Chg 12 Aug 19 Aug 26 Aug 1.7 -1.3 1.8 1.8 -6.7 2.7 2.4 106.92 124.17 128.28 22.62 3.35 110.10 124.46 -3.18 21.36 17.25 18.62 19.28 14.36 105.47 124.07 129.29 22.80 3.48 110.16 126.11 -4.69 23.82 18.60 20.34 19.32 15.95 108.30 127.39 132.49 23.37 3.56 114.17 129.40 -5.87 24.19 19.09 20.79 19.80 15.23
02 Sep 09 Sep** 108.67 119.90 132.18 23.31 3.61 115.26 129.24 -6.59 23.51 11.23 15.32 19.70 13.98 108.70 117.40 130.86 23.08 3.57 113.69 128.29 -4.99 22.16 8.70 13.19 19.51 14.60
95.80 104.70 106.54 118.16 126.20 124.55 121.37 126.64 129.01 21.41 22.34 22.75 3.81 3.64 3.41 103.34 107.43 110.45 117.20 122.37 125.32 -7.54 25.57 22.36 23.43 17.60 13.86 -2.73 21.94 21.50 21.65 18.69 14.94 -3.91 22.47 18.01 19.50 19.34 14.87
Futures Markets
ICE Brent hedge funds posted record netlong positions between 30 July and 3 September as prices surged to 117/bbl in intraday trade, in line with rising tensions surrounding Syria. By contrast, NYMEX WTI money managers netlong positions were down 13% on the month as the Cushing benchmark tradedinanarrowerrange,albeitshowingsomesignalsofstrengthinearlySeptember.
'000 contracts
$/bbl
'000 contracts
$/bbl
500 400 300 200 100 0 -100 -200 -300 -400 -500
600 400 200 0 -200 -400 -600 23 Jul 06 Aug 20 Aug 03 Sep
Producers Money Managers Non-Reportable Swap Dealers Others WTI - Mth1
Source: CFTC, NYMEX
23 Jul
06 Aug
20 Aug
03 Sep
On the products side, New York hedge funds cautiously reduced their long exposures in RBOB gasoline whiletheyincreasedHeatingOilby17%,aspricessteadilyinchedupduringthemonth.Moneymanagers
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on the other side of the Atlantic similarly increased their netlong position as ICE Gasoil grew stronger throughoutAugust,postinga36%growthmonthonmonth.
('000 contracts)
(mln)
Dec 11 Jun 12
Dec 12 Jun 13
Mth 1-5 Mth 6-12 Mth 13+ In terms of open interest both contracts were up significantly on a yoy basis, 21% for WTI and 31% for Brent. On a monthly basis they were both relatively stable, Brent inching down just under 1% and WTI growinglessthan3%.NYMEXWTIstilloutnumbersICEBrentintermsofoutstandingcontracts,although the difference is mostly due to the medium and far part of the forward curve, especially for contracts expiringinmorethanayear. As ICE Brent volumes were substantially unchanged and NYMEX WTI dropped 16.5% mom, the North Sea benchmark was the most traded during August, although the US contract still prevails in the global picture (i.e., when accounting Londontraded WTI). On a yearonyear basis, both contracts grew within singledigits,8.4%forICEBrentand9.9%forNYMEXWTI.
20 Source: CME, ICE 18 16 14 12 10 8 6 4 Jan 09 Oct 09 Jul 10 Apr 11 Jan 12 Oct 12 Jul 13 ICE Brent CME WTI
Net Vs Last
Month
Producers' Positions Swap Dealers' Positions Money Managers' Positions Others' Positions Non-Reportable Positions Open Interest
Source: CFTC
Net Vs Last
Month
Producers' Positions Swap Dealers' Positions Money Managers' Positions Others' Positions Non-Reportable Positions Open Interest
Source: ICE
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Financial Regulation
The USCommodityFuturesTradingCommission(CFTC)beganregisteringswapexecutionfacilities(SEFs) under the DoddFrank reform on 1 August. The CFTC also issued a final rule setting capital requirements for systemically important derivatives clearing organizations (SIDCOs) on 12 August. The rule increases financialrequirementsforSIDCOs,inadditiontograntingspecialenforcementauthoritytotheCFTC. The Basel Committee of regulators published on 2 September the final rules for initial margin requirements, requiring financial entities to post an initial margin for their swaps trades when those are not centrally cleared through a clearing house. Such margins are aimed at providing a safety net if no clearing house is involved and will be posted in addition to the variation margin that provides for daily fluctuations of the contract value. The new rules will be phased in over four years starting in 2015. Foreignexchangeswapsandforwardswillbeexemptfrominitialmarginrequirements. Meanwhile, on 3 September the European Securities and Markets Authority (ESMA) published its advice to the European Commission on recognising the equivalent of the regulatory regimes of Australia, Hong Kong, Japan, Singapore, Switzerland and the US. Ruling areas covered involve overthecounter (OTC) derivatives clearing, clearing houses and trade repositories. More advice on other areas not yet covered is expected by 1 October. Central counterparties (CCPs) from nonEU member countries will have to applyby15SeptemberforESMArecognition.
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The steady erosion in Libyan supplies over the month and uncertainty surrounding Iraqs September export program, among other supply disruptions, saw prices surge for prompt barrels and differentials strengthen for alternative grades in August. Prompt prices for Brent and Dubai crudes rose a further $0.50/bbl in early September on top of already robust increases in August. The Brent M1M2 futures contractwidenedto$1.65/bblinearlySeptembercomparedwitharound$1.10/bblinAugust,$0.70/bbl in July and just $0.25/bbl in June. The Dubai M1M2 also widened further in early September, to near $1.60/bblcomparedwitharound$1.05/bblinAugustand$0.55/bblinJuly.
Aug 13 Dubai
Nov 12
Feb 13
May 13
Aug 13
North Sea M1 - M2
Dubai M1 - M2
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$/bbl 6 4 2 0 -2 -4 -6
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The Brent premium over other benchmark grades WTI and Dubai widened again due to the relative strength for competing crudes with Libyan crudes in European markets. The BrentWTI price spread averaged $7/bbl in early September compared to $4.80/bbl in August, $3.21/bbl in July. Dubais discount to Brent increased to around $5.50/bbl in early September compared with around $4.30/bbl in August,$4.45/bblinJulyand$2.65/bblinJune. As expected, the loss of Libyas light, lowsulphur crude has had a significant impact on competing grades.InEurope,thepremiumforreplacementbarrelsofLibyanandIraqigradesrosesteadilyoverthe month, with Azeri Light fetching top prices (see OPEC Supply, Libyan Oil Supplies Cascade Lower). By midAugustandearly September, pricesforsomegradesweredeemedtooexpensive. Undertheweight oferodingmargins,someEuropeanrefinerscutbackplannedruns.
$/bbl 1.5 Copyright 2013ArgusMediaLtd 1.0 0.5 0.0 -0.5 -1.0 -1.5 -2.0 -2.5 -3.0 Aug 12 Nov 12 Feb 13 May 13 Aug 13 Urals (NWE) Urals (Med)
Nov 12
Feb 13
May 13
Aug 13
-8 Aug 12
$/bbl 7 6 5 4 3 2 1 0 Aug 11
ESPO differentials
Copyright 2013ArgusMediaLtd
Feb 12
Aug 12
Feb 13
Aug 13
AftertradingatapremiumtoBrentinrecentmonthsonlowerRussianexportvolumesandreducedIraqi Kirkuk and Libyan supplies to Europe, the differential for Urals in the Mediterranean turned negative briefly in early September. By contrast, the Brent Urals price differential in Northwest Europe consolidated its downward trend in early September at$1/bbl compared with a premium of +$0.05/bbl on average in July and +$0.55/bbl in July. Russian exports are forecast to rebound sharply in September. In August however, Urals crude traded at a premium of around $0.55/bbl compared to about $0.85/bbl inJulyandamoretypicaldiscountagainstDatedBrentof$0.20/bblinJune. Meanwhile, Saudi Arabia raised official selling prices (OSPs) of its Arab Light grades and Arab Medium to Asia for October after supply disruptions elevated premiums for most Middle Eastern crudes ahead of peak winter demand. The relative strength of Brent against Dubai also supported Middle East and RussiancrudeslinkedtocheaperDubai.AsianbuyerssteppeduppurchasesofsourRussianESPOcrudes, despite the $6/barrel premium over Dubai in early September. Asia saw significant increases in Iraqi BasrahLightcrudeimportsinAugustatasteep1.59mb/dcomparedwith1.29mb/dinJulybutvolumes areexpectedtoeaseinthenextseveralmonthsonmaintenanceworkatIraqssouthernterminals.
ESPO vs Dubai
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NaphthacrackspreadswererelativelystablemonthonmonthinbothEuropeandAsia.However,inthe MediterraneancrackspreadspostedwidepriceswingsthroughoutAugust,climbingbymorethan$5/bbl during the month on the back of stronger naphtha demand. Singapore naphtha crack spreads moved furtherintonegativeterritory,down$0.15/bblto$5.70/bbl.
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$/bbl 25 20 15 10 5
$/bbl 26 22 18 14 10
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Gasoil crack spreads showed diverging trends among the regions. Asian crack spreads monthly average fell by $2.51/bbl to $17.10/bbl as stronger crude prices eclipsed spot gasoil gains. Lower than expected Indian diesel consumption also pressured cracks as enduser prices continued to rise and general economic malaise subdued demand. European crack spreads inched down $0.50$0.70/bbl, to $13.85/bbl in Northwest Europe and $13.15/bbl in the Diesel Fuel Mediterranean. Weighing on prices, heavy monsoon $/bbl Cracks to Benchmark Crudes rains in India subdued domestic demand and pushed 28 additional exports to Asia and Europe. However, US 24 cracks on both gasoil and ultralowsulphur Diesel 20 bucked the trend, going up around $23/bbl on a 16 monthly basis to $11.55/bbl and $16.90/bbl 12 respectively. Copyright 2013ArgusMediaLtd 8 Nov 12 Feb 13 May 13 Aug 13 Jet/Kerosene crack spreads were relatively stable in all Aug 12 NWE ULSD USGC ULSD regions bar the US, where the crack spreads touched Med ULSD SP Gasoil 0.05% $20/bbl in midAugust and finally settled at $15/bbl in early September. US Gulf crack spreads drew support from a series of unplanned shut downs, including Motivas Port Arthur refinery in Texas and the Convent refinery in Louisiana. In contrast to the US, European and Asian crack spreads were largely unchanged on a monthly average basis though trended lowerbytheendofAugustassummertravelseasonfadedout.
$/bbl 0 -5 -10 -15 -20 -25 -30 Aug 12 Nov 12 Feb 13 NWE HSFO 3.5% SP HSFO 380 4%
Copyright 2013ArgusMediaLtd
6 Aug 12
FueloilcrackspreadsfellsteadilythroughoutAugustinEuropeandAsiabutinchedhigherintheUSGulf ahead of the winter season. Asian cracks consolidated their negative trend, further dipping to levels unseen in more than two years, on the back of lower bunker consumption, belowaverage Japanese powersectordemandandChineseimportsatayeartodatelow.
$/bbl Cracks to Benchmark Crudes 15 Copyright 2013ArgusMediaLtd 10 5 0 -5 -10 -15 -20 Aug 12 Nov 12 Feb 13 May 13 Aug 13 NWE LSFO 1% Med LSFO 1% Indonesia LSWR
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Freight
Rates for very large crude carriers (VLCCs) experienced another lacklustre month in August as ample tonnage weighed heavily on markets. Furthermore, vessel earnings fell into negative territory as bunker costs surged to over $600/t and $660/t for HFO and LSFO, respectively, in line with soaring benchmark crude prices. Despite healthy demand for Middle Eastern crudes, rates on the benchmark VLCC Middle EastGulfAsiatradelanguishedatbelow$10/mtthroughoutAugustandearlySeptember.
US$/mt 25 20 15 10 5 0 Jan-11 Jul-11
US$/mt 40 35 30 25 20 15 10
30Kt SP - Jap A similar picture was evident in Atlantic Basin Suezmax markets where, despite disruption in Libya and reports of extra light, sweet crude leaving West Africa bound for Europe, rates weakened monthon
Jan-12 Jul-12
Jan-13 Jul-13
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month. Indeed, despite, some early August strengthening to over $16.50/mt, rates on the benchmark WestAfricaUSGulfCoastrouteretreatedsharplysothatbyearlySeptembertheysatbelow$13/mtas supplyheavilyoutweigheddemand. The only bright spot in crude tanker markets was Northwest Europe where rates uncharacteristically firmed during a period where they historically tend to trend sideways. Following a raft of cargos coming out of the Baltic terminals of UstLuga and Primorsk, reportedly bound for longhaul transatlantic destinations, regional Aframax tonnage tightened considerably. This pushed rates for the Baltic UK trades to over $9/mt in midAugust. However, as extra vessels entered the market in earlySeptember, ratesslippedbacktotheirnormallevelsofapproximately$6/mt. Product tanker markets experienced a mixed month, generally weakening over the first half of August before rebounding from late month onwards after demand picked up. In the East, after languishing at yearlowsof$20/mtinearlyAugust,thebenchmarkMiddleEastGulfJapantradesurgedtoayearhigh of close to $32/mt by early September spurred on by tight fundamentals. However, these levels are unlikely to be sustained for long with current reports of vessels ballasting towards the Middle East Gulf from elsewhere. In the Atlantic basin, rates weakened over the first half of August to stand at yeartodate lows as transatlantic trade remained below par. However, after multiple gasoline cargoes entered the market in midmonth, rates began to firm so that by earlySeptember rates on the benchmarkUKUSAtlanticcoasttradeonceagainexceeded$17/mt.
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R EFINING
REFINING
Summary
Global refinery crude throughputs reached a seasonal peak in July, at an estimated 78.2 mb/d, up 1mb/d from June and 1.8mb/d above a year earlier. Monthly gains spanned all regions, bar China. GlobalthroughputsareexpectedtofallsteeplyfromAugustonwards,duetoweakerrefinerymargins and the onset of seasonal maintenance. Scheduled turnarounds are especially heavy in Europe and theFSU,mitigatingtheeffectofcurrentfeedstocksupplydisruptions. The estimate of global throughputs for 3Q13 has been revised downwards by 180 kb/d since last months Report, largely on lower expectations of European refinery runs. Weak margins have revived talk of economic run cuts, on top of heavy planned maintenance. Global crude runs are forecast to reach 77.2 mb/d in 3Q13, up 1.1mb/d above yearearlier levels, before declining to 76.8mb/d in 4Q13. OECD crude runs rose another 450 kb/d in July, to average 38 mb/d. While all OECD regions moved higher, Japan, the US and Italy accounted for the bulk of the increase. Annual gains were reported only for the US and Japan. After a temporary respite in June, European crude intake resumed its structural decline, sliding by some 510kb/d yoy. Margins generally deteriorated in August, promptingtalkoffurtherruncutsinbothEuropeandAsia. Refinery margins fell in all regions surveyed bar the US Gulf Coast in August, as crude prices rose faster than product prices. European margins fell by nearly $1/bbl on average. Simple refiners were particularlyhardhitandarenowfirmlyinthered.EvensteeperfallscameintheUSMidcontinent,as crude stock draws at Cushing supported WTI prices, and in Singapore, where only Dubai hydrocracking margins remained positive. US Gulf Coast margins rose on average in August, propped upbyrefineryproblemsinthesecondhalfofthemonth.
Global Refining
mb/d 79 78 77 76 75 74 73 72 71 Jan Crude Throughput
Jul
Crude Runs
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As a result of slightly weaker reported OECD and Chinese refinery runs for July, and a somewhat more pessimistic outlook for runs in September, 3Q13 global crude run estimates have been trimmed by 180kb/d since last months report. At 77.2 mb/d, global runs are still assessed an impressive 1.1mb/d above the same quarter last year, with gains almost entirely accounted for by nonOECD countries. The largest contributors to growth remain China (+400 kb/d), Russia (+155 kb/d), Algeria (180kb/d), India (+145kb/d), Venezuela (+125 kb/d), Saudi Arabia (+85 kb/d) and Brazil (+80 kb/d). In the OECD, only US refinerscontinuetosurgeaheadonthebackofadvantagedregionalcrudesupplies,comparativelylow energy costs (cheap natural gas) and robust export demand for refined products. Preliminary weekly data show US crude intake running 390kb/d and 535 kb/d above yearearlier levels in July and August, respectively.
Global Refinery Crude Throughput1 2
(million barrels per day) May 13 Americas Europe Asia Oceania Total OECD FSU Non-OECD Europe China Other Asia Latin America Middle East Africa Total Non-OECD Total 18.2 11.5 6.1 35.8 6.7 0.4 9.2 9.7 4.6 5.4 2.1 38.2 74.0 Jun 13 2Q2013 19.0 12.0 6.5 37.5 7.0 0.4 9.7 9.6 4.8 5.9 2.2 39.6 77.2 18.4 11.7 6.3 36.4 6.6 0.4 9.4 9.7 4.7 5.5 2.1 38.4 74.8 Jul 13 19.1 12.2 6.6 38.0 7.1 0.5 9.5 9.8 4.9 6.1 2.2 40.2 78.2 Aug 13 18.9 12.1 6.8 37.8 7.1 0.5 9.4 9.7 4.8 6.2 2.2 39.7 77.6 Sep 13 18.2 11.7 6.4 36.2 6.5 0.5 9.5 9.7 4.8 6.2 2.2 39.5 75.7 3Q2013 18.8 12.0 6.6 37.4 6.9 0.5 9.5 9.8 4.8 6.2 2.2 39.8 77.2 Oct 13 17.9 11.6 6.5 36.0 6.6 0.5 9.7 9.9 4.6 6.2 2.2 39.6 75.7 Nov 13 18.2 11.6 6.8 36.7 6.9 0.5 10.2 9.9 4.7 6.2 2.2 40.5 77.2 Dec 13 18.5 11.7 7.0 37.2 6.8 0.5 10.3 10.0 4.5 6.2 2.2 40.5 77.7 4Q2013 18.2 11.7 6.8 36.6 6.8 0.5 10.1 9.9 4.6 6.2 2.2 40.2 76.8
1 Preliminary and estimated runs based on capacity, know n outages, economic run cuts and global demand forecast 2 From the report dated 10 August, 2012 OECD Americas include Chile and OECD Asia Oceania includes Israel. Annualgrowthisexpectedtoslowsomewhatin4Q13,toaround540kb/dglobally.OECDrunsaresetto continuetocontractstructurally,onlowerenduserdemandandreducedcapacitycomparedwithayear earlier. In the Pacific and Europe refinery consolidation continues, with plants shutting permanently in both regions during the summer (Cosmos 140 kb/d Sakaide refinery shut in early August and ENIs 80kb/d Venice refinery halted operations in July before being converted into a biorefinery). In the non OECDregion,runscontinuetobesupportedbymorerobustdemandgrowththanintheOECD,aswellas by new refining capacity. In Saudi Arabia, the 400 kb/d Satorp plant in Jubail is ramping up runs as new units are commissioned. The plant is expected to reach full rates in early 2014. While some uncertainty surroundsthestartupofPetroChinas200kb/dgrassrootPengzhourefineryinSichuanprovince(dueto potential flood damage to pipelines feeding the refinery), company officials announced on 5 September, that after several delays, the plant will start up in late October. By endyear, Sinochems new 240kb/d Quanzhou refinery is also set to start trial runs. In all, 4Q13 global crude runs are estimated to average 76.8mb/d.
Refining Margins
Refining margins fell in all regions bar the US Gulf Coast in August, as increases in product prices generally failed to keep up with gains recorded for feedstock prices. Crude oilgrades, in particular North Sea and Middle Eastern grades, were supported by severe supply disruptions while product price increases were capped by the end of the summer driving season and high gasoline inventories on both sidesoftheAtlantic.SimplerefinerymarginsmovedmorefirmlyintotheredinbothNorthwestEurope
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R EFINING
and the Mediterranean, sinking to their lowest levels sinceJanuary.WhereasNorthwestEuropeanmarginswill likely be supported by heavy maintenance scheduled for September and October, on the Mediterranean economic run cuts are starting to look inevitable. CEPSA reportedly decided to start maintenance work at its Tenerife refinery early due to poor economics and will keep the refinery shut for longer than initially planned. Several other refineries scheduled to shut for maintenance may delay their restart until margins improve.
($/bbl) Monthly Average May 13 Jun 13 Jul 13 Aug 13
Dec 12
Mar 13
Jun 13
Sep 13
Es Sider HS Urals HS
IEA/KBCGlobalIndicatorRefiningMargins1
Change
A ug 1 3-Jul 1 3
NWEurope
Brent (Cracking) Urals (Cracking) Brent (Hydroskimming) Urals (Hydroskimming) 4.31 3.82 -0.02 -1.81 5.32 4.04 1.35 -2.40 7.22 2.60 2.33 8.48 2.96 6.42 29.67 35.19 32.42 36.07 36.17 -0.80 -2.04 4.10 0.48 5.11 4.03 0.65 -1.93 6.90 5.32 2.64 -1.71 6.95 3.11 2.83 8.34 4.44 7.35 22.86 21.48 24.92 25.13 25.07 25.63 -0.24 -0.32 5.46 2.63 4.45 2.93 -1.34 -3.68 5.46 3.35 0.19 -4.11 5.77 0.80 0.42 7.87 4.55 6.03 15.62 18.45 21.42 18.21 22.06 22.28 -1.21 -2.85 5.69 1.39 3.56 2.31 -2.58 -4.86 4.63 2.79 -1.08 -5.43 6.88 1.76 1.44 8.94 5.55 7.06 10.82 16.15 17.26 13.00 19.30 17.92 -3.06 -6.20 3.45 -2.46 -0.88 -0.61 -1.24 -1.18 -0.83 -0.55 -1.27 -1.32 1.11 0.95 1.02 1.07 1.00 1.03 -4.80 -2.30 -4.16 -5.21 -2.76 -4.35 -1.85 -3.35 -2.24 -3.85 4.51 3.05 -1.26 -3.43 5.57 3.62 0.31 -3.75 6.87 0.97 0.45 8.91 5.43 6.31 15.36 19.03 21.56 17.81 22.66 22.35 -2.25 -4.19 4.41 -0.34 3.54 1.91 -2.24 -4.73 4.58 2.29 -0.78 -5.35 4.25 -0.45 -0.74 6.26 3.74 4.40 9.29 14.32 15.03 11.42 17.03 15.68 -1.86 -4.58 4.61 -0.97 3.45 1.59 -2.66 -5.52 4.51 2.38 -1.13 -5.77 5.53 0.86 0.52 7.56 4.83 6.02 8.67 13.23 14.09 10.68 16.07 14.66 -2.23 -5.42 4.17 -1.98 3.99 3.14 -2.16 -4.23 5.19 3.76 -0.56 -4.70 9.61 4.24 3.90 11.67 7.57 9.74 11.36 17.53 18.69 13.46 20.75 19.32 -3.49 -6.24 2.74 -2.64 2.68 2.29 -4.03 -5.71 3.68 2.33 -2.64 -6.86 8.31 2.92 2.73 10.43 6.11 8.53 13.15 19.15 20.76 15.56 22.70 21.54 -4.98 -9.10 1.86 -4.87
Mediterranean
Es Sider (Cracking) Urals (Cracking) Es Sider (Hydroskimming) Urals (Hydroskimming)
USGulfCoast
50/50 HLS/LLS (Cracking) Mars (Cracking) ASCI (Cracking) 50/50 HLS/LLS (Coking) 50/50 Maya/Mars (Coking) ASCI (Coking)
USMidcon
WTI (Cracking) Bakken (Cracking) WTI (Coking) 30/70 WCS/Bakken (Coking) Bakken (Coking) 30/70 WCS/Bakken (Cracking) 31.65
Singapore
Dubai (Hydroskimming) Tapis (Hydroskimming) Dubai (Hydrocracking) Tapis (Hydrocracking)
1 Global IndicatorRefiningMargins are calculatedforvarious complexityconfigurations,eachoptimisedforprocessingthe specific crude(s)ina specificrefining centre.Margins include energycost,butexclude othervariable costs,depreciationandamortisation.Consequently,reportedmargins shouldbe takenas an indication,orproxy,ofchanges inprofitabilityfora givenrefiningcentre.Noattemptis made tomodel orotherwise commentuponthe relative economics of specific refineries runningindividual crude slates andproducingcustomproductsales,norare these calculations intendedtoinferthe marginal values ofcrude forpricingpurposes. Source:IEA,KBCAdvancedTechnologies (KBC) US refinery margins diverged in August. Those on the Gulf Coast improved by just over $1.00/bbl on average. LLS and HLS crudes saw their discount to Brent widen in August, as the threat of military action in Syria and supply outages in the North Sea, Iraq and Libya supported Brent. Gulf Coast margins also
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benefitedfromrenewedproblemsatMotivas600kb/dPortArthurrefinery.Gasolinecracksplummeted in early September, however, as the Labour Day weekend marked the end of the driving season amid amplegasolineinventories.Incontrast,refiningmarginsintheUSMidcontinentfellby$2.305.21/bblon average.ContinuedUScrudestockdraws,particularlyatCushing,whereinventorieshittheirlowestlevel sinceMarch2011,proppedupWTIlinkedgrades,cuttingintoprofits.
$/bbl 15.0 10.0 5.0 0.0 -5.0 -10.0 Sep 12 Dec 12 Mar 13 Jun 13 Sep 13
$/bbl 10.0 7.5 5.0 2.5 0.0 -2.5 -5.0 -7.5 -10.0 Sep 12
Dec 12
Mar 13
Jun 13
Dubai HS Tapis HS
Sep 13
In Singapore, margins continued their steep declines in August, and only Dubai cracking margins remained positive. On average, regional margins fell by $1.853.85/bbl, with the heaviest losses seen for simple plants. High inflows of residual fuel oil from Europe and the FSU, subdued regional demand and reduced buying from Chinese teapot refiners have taken the Singapore fuel oil crack to a fiveyear low of$11.42/bbl on average in August. Gasoline cracks to Dubai fell by a hefty $8.23/bbl in the month, to average$10.01/bbl.
OECD Total
Crude Throughput
mb/d 0.4 0.2 0.0 -0.2 -0.4 -0.6 -0.8 -1.0 -1.2 1Q11
3Q11
1Q12 Europe
3Q12
1Q13
3Q13 OECD
Monthly June data for a number of OECD countries were weaker than expected, leading to a 165kb/d downward revision overall. Final data showed Japanese crude intake 165 kb/d lower than preliminary data had suggested. Smaller downward revisions also came for a number of European countries, taking the regional total down 110 kb/d from last months Report. Providing a partial offset, US refinery crude intakewasrevisedupwardsby130kb/d.
Americas
Asia Oceania
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North American refinery crude intake rose by 130 kb/d in July, to 19.1 mb/d, or 320 kb/d above the previous year. US crude runs continue to trend well above yearearlier levels, thanks in part to new or restartedcapacity.Annualgainsof390kb/dand535kb/dforJulyandAugust,respectively,camemostly from the US Gulf Coast, but also from the East Coast where the Trainer refinery now owned by a Delta Air Lines subsidiary was shut last year due to poor returns. Delta has said it lost $22 million in 1Q13 and $51millionin2Q13ontherefinery,butthattheplanthadneverthelesshelpedlowerfuelcostsandturn arecordsettingprofitfortheairline.
mb/d 19.5 19.0 18.5 18.0 17.5 17.0 16.5 Jan Mar May Jul Sep Nov Jan
OECD Americas
Crude Throughput
Source: EIA
Despiterelativelypoormargins,USGulfCoastrefinersprocessedanaverage450kb/dmorecrudeinJuly and August than in the same period in 2012. Towards the end of August, and for the month as a whole, refinery margins for US crudes improved, however. Renewed problems at Motivas Port Arthur likely helped lift margins in the second half of August. A fire at the plant on 17 August knocked out more than half the 600 kb/d plants output for at least two weeks. The fire, the second in a week, broke out in a hydrocracking unit located next to the largest of the refinerys three crude distillation units, forcing a shutdown of that 325 kb/d unit. It has been reported that the refinery could be forced to shut the CDU for up to three months in 2014 to complete repairs on a pipe that feeds it. US refinery maintenance is expectedtobelessheavythisyearcomparedtolastyear.
mb/d US Gulf Coast Refinery Throughputs 9.0 8.5 8.0 7.5 7.0 6.5
Source: EIA
Source: EIA
After a temporary respite in June, European refining activity resumed its steep structural contraction in July. Downward revisions to June European refinery runs, totalling some 110kb/d since last months Report, took regional runs just below yearearlier levels, as opposed to the annual gains showed last month. Preliminary data for July were also slightly weaker than expected (135 kb/d below forecast), taking regional runs up 180 kb/d from June, to 12.2 mb/d. Compared with the relatively elevated runs recordedinJulylastyear,regionalthroughputsresumedannualdeclinesofmorethan500kb/d.Yearto date (through July), European runs have contracted by an average 300 kb/d, with particularly steep contractions in Italy and the United Kingdom. French and German refiners have held up surprisingly well comparedtoyearearlierlevelswhileSpanishrefineryrunshaveincreasedduetoexpandedcapacity.
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European refinery runs were likely weak in August and will remain so through October. Preliminary data from Euroilstocks released on 10 September show European runs falling 125kb/d in August, when refinery margins in both Northwest Europe and the Mediterranean continued to slide and in the case of simpleplantsremainedfirmlynegative.FromSeptemberonwards,refinersbothintheNorthandonthe Mediterranean embark on a heavy turnarounds schedule, taking just over 1 mb/d capacity offline in September and 1.2 mb/d in October. Key plants undergoing maintenance include Shells Pernis refinery which started work on 2September, BPs Rotterdam refinery, Exxons Antwerp plant, Preems Gothenborg and Lysekil refineries in Sweden, Cepsas Tenerife refinery and the Stanlow and Lindsey refineriesintheUK.MostoftheseshutdownsareexpectedtoextendintoOctober.
mb/d 14.0 13.5 13.0 12.5 12.0 11.5 11.0 Jan Mar May Jul Sep Nov Jan
OECD Europe
Crude Throughput
OECD Europe
Refinery Shutdowns
Refinery crude throughputs in OECD Asia Oceania rose by 140 kb/d in July, to 6.65 mb/d, as sharply higher Japanese crude runs were partly offset by slightly lower South Korean rates. Both June and July preliminaryestimatesfortheregionwererevisedlowersincelastmonthsReport.Finalmonthlydatafor Japan for June were 170 kb/d lower than preliminary data had suggested, while South Korean throughputsinJulywere170kb/dlessthanourpreviousestimate.SouthKorea'sSKEnergystartedwork on expanding a 74 kb/d RFCC unit at its massive 1.1 mb/d Ulsan refinery in July, resulting in lower throughputs. The work, which will raise capacity of the RFCC by 1020%, is expected to be completed in midSeptember. The company is also conducting maintenance at a 240 kb/d CDU from 25 August to 18September,accordingtonewsreports.
mb/d 7.5
Jul
Sep
7.0
3.5
6.5
3.0
6.0 Jan Mar May Jul Sep Nov Jan Range 08-12 2012 2013 Average 08-12 2013 est.
2.5 Jan
Preliminary weekly data from the Petroleum Association of Japan (PAJ) show that Japanese refiners increased runs in August, to 3.58 mb/d (including NGLs processed, normally averaging 180 kb/d). The increase came despite the permanent closure of Cosmo Oils 140 kb/d Sakaide refinery in early August. The shutdown had been announced last year, and is part of the governments measures to restructure the countrysailingrefineryindustryamidfallingdomestic demand.The MinistryofEconomy,Tradeand Industry set rules in 2010 requiring refiners to increase their residual cracking ratio by March 2014, in essenceforcingrefinerstoupgradeplantsorreducecrudedistillationcapacity.
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Japan has already reduced crude distillation capacity by 420kb/d since 2009, through the shutdown of Showa Shells 120 kb/d Ogimachi refinery in 2011 and several smaller capacity reductions over 2009 and 2010. Idemitsu Kosan plans to permantly shut a 120 kb/d CDU at its Tokuyama refinery in March 2014, while JX Nippon Oil & Energy Corp, Japans largest refiner, has announced it will permanently shut 200kb/dofCDUcapacitybytheMarch2014deadline.ItisstillnotclearwhichfacilityJXwillshut.Tonen Generalisalsoexpectedtoreducecapacitybyaround100kb/dnextyear,takingtotalJapanesecapacity reductionstoalmost1mb/doverthe20092014period.
Refinery Crude Throughput and Utilisation in OECD Countries
(million barrels per day) Change from Feb 13 US2 Canada Chile Mexico OECD Am ericas France Germany Italy Netherlands Spain United Kingdom Other OECD Europe OECD Europe Japan South Korea Other Asia Oceania OECD Asia Oceania OECD Total
2 US50 3 OECD A mericas includes Chile and OECD A sia Oceania includes Israel. OECD Euro pe includes Slo venia and Esto nia, tho ugh neither co untry has a refinery
Utilisation rate1 Jul 13 90.5% 87.8% 66.2% 76.9% 89.0% 91.3% 94.2% 70.0% 79.8% 83.8% 75.2% 80.2% 81.5% 72.9% 90.0% 29.0% 79.1% 84.6% Jul 12 88.5% 94.9% 70.8% 74.3% 87.8% 88.2% 91.7% 73.4% 80.9% 87.2% 79.5% 80.0% 82.2% 68.8% 96.2% 79.2% 79.1% 84.3%
Mar 13 14.70 1.77 0.16 1.29 17.92 1.12 1.84 1.19 0.94 1.18 1.26 4.02 11.54 3.37 2.43 0.92 6.72 36.17
Apr 13 14.86 1.57 0.14 1.28 17.86 1.20 1.70 1.21 1.03 1.32 1.36 3.77 11.58 3.30 2.24 0.92 6.46 35.90
May 13 15.30 1.46 0.18 1.28 18.21 1.22 1.87 1.19 0.99 1.21 1.26 3.76 11.49 2.85 2.33 0.91 6.08 35.79
Jun 13 15.83 1.71 0.19 1.30 19.02 1.28 1.96 1.27 0.99 1.21 1.32 3.97 11.99 2.97 2.59 0.94 6.50 37.52
Jul 13 16.05 1.68 0.15 1.27 19.15 1.28 1.90 1.41 1.03 1.27 1.30 3.99 12.18 3.26 2.47 0.93 6.65 37.97
Jun 13 0.21 -0.02 -0.04 -0.03 0.13 0.00 -0.05 0.14 0.04 0.06 -0.02 0.02 0.18 0.28 -0.13 -0.01 0.14 0.45
Jul 12 0.39 -0.11 -0.01 0.04 0.32 -0.10 -0.05 -0.19 -0.01 -0.05 -0.14 0.03 -0.51 0.11 -0.16 -0.04 -0.10 -0.29
14.25 1.82 0.19 1.24 17.50 1.21 1.96 1.27 1.00 1.12 1.28 3.84 11.69 3.67 2.72 0.97 7.35 36.54
1 Expressed as a percentage, based o n crude thro ughput and current o perable refining capacity
Non-OECD Total
Crude Throughput
Sep
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Chinese refinery runs fell by 150 kb/d in July compared with June, to 9.5 mb/d, but were some 600kb/d above year earlier levels. Throughputs declined another 155 kb/d in August as major refineries scaled back runs due to refinery maintenance. Around 0.8mb/d of capacity is assessed as being offline in August, compared with less than 0.4 mb/d in July. The latest official customs data also shows Chinese crude purchases fell to a sixmonth low in August, though remained 16.5% above year earlier levels. Chinese throughputs are expected to rebound from September onwards as work is completed and new capacityiscommissioned.
mb/d 11.0 10.0 9.0 8.0 7.0 6.0 Jan Mar 2009 2012 May Jul Sep Nov Jan 2011 2010 2013
China
Crude Throughput
1Q09
1Q10
1Q11
4Q11
4Q12
4Q13
Chinese crude runs continue to track domestic demand. New capacity starting up this year could put pressure on some refiners to curtail throughputs or to delay full startup of new plants. Sinopec reportedly brought online Anqing refinerys new 70 kb/d CDU was reportedly brought on line at the end of August, raising capacity to 180kb/d. The expansion also included a new 40 kb/d FCC, a 45 kb/d diesel hydrocracker and a 20 kb/d reformer. In all, Chinese net refinery expansions amount to just over 700kb/dthisyear,withthebulkoftheadditionsattheendoftheyear. PetroChinaannouncedinearlySeptemberthatitplanstostartupitsnew200kb/dPengzhourefineryin Sichuan province in late October. The plant, which was scheduled to start up in April of this year, has already been delayed several times. Concerns have arisen that the severe floods currently plaguing the region could further delay the startup. The plant will process crude from the remote Xinjiang region as well as neighbouring Kazakhstan. The complex also includes an ethylene facility/petrochemical plant. Sinochems 240 kb/d Quanzhou refinery is also scheduled to start trial runs by the end of this year. The company had reportedly bought its first crude cargo, of Angolan medium sweet Cabinda, scheduled to loadinthesecondhalfofSeptember. Indian crude runs rose 70 kb/d in July, to 4.5mb/d, mainly on higher runs from NRLs Numaligarh refinery and HPCLs Visakh plant. Both plants had been shut due to fires in May. HPCLs 170 kb/d Visakh refinery was hit by a second fire in August that killed eight workers. On an annual basis, Indian refinery crudeintakestoodsome220kb/daboveyearearlierlevels. Other Asia mb/d Crude Throughput Indias widening current account deficit and the rupees 10.5 steep depreciation (see Demand) are not only forcing the 10.0 countrys government to consider demandreducing 9.5 measures, but also to limit imports of crude oil by refiners 9.0 and to look for alternative crude supplies. The Indian 8.5 government has announced it is considering increasing its 8.0 purchases of Iranian crude oil, despite mounting pressures 7.5 Jul Sep Nov Jan Jan Mar May from the US to continue reductions to comply with Range 08-12 Average 08-12 international sanctions. The Indian rupee has depreciated 2012 2013 est. 2013 by 20% against the US dollar so far this year, hitting record
Crude Runs
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lows in early September, sharply raising the cost of dollardenominated crude imports (all crude imports except those from Iran are paid in dollars). The Reserve Bank of India has opened a foreign exchange swapwindowtomeettheentireUSdollarrequirementofthethreestateownedrefinersandmarketing companies who need to pay for crude oil purchases in an effort to control volatility in the currency market.Indiacurrentlyimportsaround3.8mb/dofcrude.LatestofficialimportstatisticsshowthatIndia purchased only 36kb/d of Iranian oil in July however, as refiners continued to diversify away from Iranian oil, though tanker data suggest volumes were higher in August. Yeartodate Indian oil imports from Iran (JanJuly) have been cut by almost by half from the same period last year, to 175kb/d. India has since July 2011 paid for its purchases of Iranian oil in euros and rupees and was in midJuly of this year allowed to pay for its oil imports from Iran entirely in rupees. Notwithstanding international sanctions on Iranian crude purchases, issues of insurance, reinsurance, vessel availability and banking facilitieshavetoberesolvedforIndiatosignificantlyincreaseitspurchasesofIranianoil. Russian crude runs in July and August were slightly higher than expected and have been revised up by 40kb/d and 50 kb/d respectively. Refinery throughputs in July were up by 110 kb/d over the month, to 5.7mb/d. A 50 kb/d increase came from Rosnefts Tuapse plant, which launched a new 140kb/d crude unitin July.Otherincreasescamefrom the companysAchinskplantwhichhad beenrunningatreduced rates in May and June. Preliminary data for August indicate that runs held steady in that month, at over 5.7mb/d.Ifconfirmedbyofficialdatanextmonth,Russianrefineryrunsweremorethan200kb/dabove yearearlier levels in both July and August. Looking ahead, Russian throughputs are set to fall sharply over September and October due to a heavy turnaround season. More than 900 kb/d of capacity is scheduledtobeofflineinSeptember,fallingbackto765kb/dinOctober. Elsewhere in the FSU, Kazakhstans refinery runs fell by 60 kb/d to 250 kb/d in July due to maintenance and upgrading work at the 150 kb/d Pavlodar refinery. In August, the countrys second largest refinery, the100kb/dAtyrauplant,shutcompletelytofitanintegratedgasolineanddieselhydrotreatingunit.
mb/d 5.8 5.6 5.4 5.2 5.0 4.8 4.6 Jan Mar 2010 2013 est.
Russia
Crude Throughput mb/d 6.4 6.2 6.0 5.8 5.6 5.4 5.2 5.0 Jan
Middle East
Crude Throughput
May
Sep
Nov
Jan
2012
In the Middle East, refinery crude throughputs surged by 465 kb/d in June, as operators in Saudi Arabia and Kuwait completed extensive maintenance work. Saudi Aramcos 400 kb/d Yanbu refinery was completelyshutinAprilandmostofMayforscheduledturnarounds.KuwaitsMinaAlAhmadiandMina Abdullah refineries were equally completing extensive turnarounds in April and May with a combined 240kb/d offline in those two months. The former plant, KNPCs 270 kb/d Mina Abdullah refinery was forced to shut an 80 kb/d CDU on 21 August following a fire. The unit is expected to remain offline for repairs until midSeptember. Saudi Aramco and Totals 400 kb/d JV refinery in Jubail was reportedly processing around 120 kb/d of Arabian Light crude in the first of two crude distillation units online. The plantwilltakeanother120kb/doflightcrudeoncethesecondunitstartsupthisfall,andwillswitchtoa 28 API, 3% sulphur Arabian Heavy blend once the coker unit is commissioned. The startup of Jubail will have a particularly steep impact on yearonyear growth in global runs in the first half of 2014, exacerbatedbytheheavymaintenanceandlowrunsseenin1H2013.
Jul
Sep
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Table 1 Table 1 - World Oil Supply and Demand WORLD OIL SUPPLY AND DEMAND
(million barrels per day)
2010 2011
OECD DEMAND
Americas1 Europe2 Asia Oceania3 Total OECD
23.4 23.7 23.8 23.8 23.7 13.7 13.8 13.8 13.7 13.7 9.2 8.1 8.3 8.8 8.6 46.3 45.6 46.0 46.2 46.0
23.7 23.7 23.9 23.8 23.8 13.2 13.8 13.7 13.4 13.5 8.9 7.9 8.2 8.6 8.4 45.8 45.4 45.7 45.8 45.7
23.7 23.7 23.8 23.7 23.7 13.2 13.3 13.6 13.5 13.4 8.8 7.8 8.1 8.5 8.3 45.6 44.8 45.5 45.7 45.4
NON-OECD DEMAND
FSU Europe China Other Asia Latin America Middle East Africa Total Non-OECD
4.1 4.4 0.7 0.7 8.9 9.3 10.7 11.0 6.1 6.2 7.3 7.4 3.5 3.5 41.4 42.5 88.4 88.9
4.3 4.4 4.6 4.6 4.5 0.7 0.7 0.7 0.7 0.7 9.5 9.6 9.8 10.3 9.8 11.2 11.4 11.1 11.5 11.3 6.2 6.4 6.5 6.6 6.4 7.3 7.8 8.2 7.5 7.7 3.6 3.6 3.6 3.7 3.7 42.7 43.9 44.5 44.8 44.0 89.0 89.5 90.5 91.1 90.0
4.3 4.5 4.8 4.8 4.6 0.6 0.7 0.7 0.7 0.7 9.9 10.0 10.2 10.5 10.1 11.6 11.7 11.3 11.7 11.6 6.4 6.6 6.7 6.6 6.6 7.5 7.8 8.4 7.7 7.8 3.8 3.8 3.8 3.9 3.8 44.1 45.0 45.8 45.9 45.2 89.9 90.5 91.5 91.7 90.9
4.4 4.6 4.9 4.9 4.7 0.7 0.7 0.7 0.7 0.7 10.4 10.4 10.5 10.9 10.5 11.9 12.0 11.7 12.0 11.9 6.4 6.7 6.9 6.8 6.7 7.6 8.1 8.6 8.0 8.1 3.9 4.0 4.0 4.1 4.0 45.4 46.5 47.2 47.3 46.6 91.0 91.3 92.7 93.0 92.0
15.6 15.5 15.7 16.6 15.9 3.8 3.6 3.1 3.3 3.5 0.6 0.6 0.6 0.5 0.6 19.9 19.7 19.4 20.5 19.9
16.8 16.7 17.2 17.6 17.1 3.3 3.3 3.0 3.4 3.2 0.4 0.5 0.5 0.5 0.5 20.6 20.5 20.7 21.5 20.8
17.9 17.8 17.9 18.4 18.0 3.3 3.2 3.0 3.2 3.2 0.5 0.5 0.5 0.5 0.5 21.7 21.5 21.4 22.1 21.7
NON-OECD SUPPLY
FSU Europe China Other Asia5 Latin America5,7 Middle East Africa5 Total Non-OECD Processing Gains6 Global Biofuels7 Total Non-OPEC5
13.5 13.6 0.1 0.1 4.1 4.1 3.7 3.6 4.1 4.2 1.7 1.7 2.6 2.6 29.9 29.9 2.1 1.8 2.1 1.9
13.7 13.6 13.6 13.7 13.7 0.1 0.1 0.1 0.1 0.1 4.2 4.1 4.2 4.3 4.2 3.6 3.5 3.6 3.6 3.6 4.3 4.1 4.1 4.2 4.2 1.4 1.4 1.5 1.5 1.5 2.4 2.2 2.2 2.3 2.3 29.8 29.2 29.3 29.7 29.5 2.1 1.5 2.1 1.9 2.2 2.1 2.1 1.9 2.1 1.9
13.8 13.8 13.7 13.8 13.8 0.1 0.1 0.1 0.1 0.1 4.2 4.2 4.0 4.1 4.2 3.6 3.5 3.5 3.5 3.5 4.2 4.2 4.2 4.4 4.2 1.4 1.3 1.4 1.4 1.4 2.3 2.3 2.4 2.5 2.4 29.6 29.5 29.4 29.8 29.6 2.2 1.5 2.2 2.0 2.2 2.3 2.2 2.1 2.2 2.0
13.8 13.7 13.8 13.8 13.8 0.1 0.1 0.1 0.1 0.1 4.2 4.3 4.3 4.3 4.2 3.5 3.5 3.5 3.5 3.5 4.4 4.4 4.5 4.6 4.5 1.4 1.4 1.4 1.4 1.4 2.6 2.6 2.6 2.6 2.6 30.0 30.0 30.2 30.2 30.1 2.2 1.7 2.2 2.1 2.2 2.4 2.2 2.1 2.2 2.1
52.7 52.8
OPEC
Crude8 NGLs Total OPEC5
31.3 31.7 31.5 30.7 31.3 6.2 6.2 6.3 6.4 6.3 37.5 37.9 37.8 37.1 37.6 90.9 90.8 90.8 91.3 90.9
6.6
6.6
6.5
6.7
6.7
6.8
6.8
6.7
Total Supply
87.4 88.6
STOCK CHANGES AND MISCELLANEOUS Reported OECD Industry 0.1 -0.2 Government 0.0 -0.1
Total Floating Storage/Oil in Transit Miscellaneous to balance10
Total Stock Ch. & Misc
Memo items:
Call on OPEC crude + Stock ch.11 Adjusted Call on OPEC + Stock ch.12
29.5 30.4 31.1 30.5 30.4 31.1 31.1 31.1 31.3 31.2
29.7 30.0 30.3 29.6 29.9 30.1 31.0 30.9 30.1 30.5
28.8 28.7 29.7 29.6 29.2 29.3 29.3 30.2 30.1 29.8
1 As of August 2012 OMR, OECD Americas includes Chile. 2 As of August 2012 OMR, OECD Europe includes Estonia and Slovenia. 3 As of August 2012 OMR, OECD Asia Oceania includes Israel. 4 Measured as deliveries from refineries and primary stocks, comprises inland deliveries, international marine bunkers, refinery fuel, crude for direct burning, oil from non-conventional sources and other sources of supply. 5 Other Asia includes Indonesia throughout. Latin America excludes Ecuador throughout. Africa excludes Angola throughout. Total Non-OPEC excludes all countries that were members of OPEC at 1 January 2009. Total OPEC comprises all countries which were OPEC members at 1 January 2009. 6 Net volumetric gains and losses in the refining process and marine transportation losses. 7 As of the July 2010 OMR, Global Biofuels comprise all world biofuel production including fuel ethanol from the US and Brazil. 8 As of the March 2006 OMR, Venezuelan Orinoco heavy crude production is included within Venezuelan crude estimates. Orimulsion fuel remains within the OPEC NGL and non-conventional category, but Orimulsion production reportedly ceased from January 2007. 9 Comprises crude oil, condensates, NGLs, oil from non-conventional sources and other sources of supply. 10 Includes changes in non-reported stocks in OECD and non-OECD areas. 11 Equals the arithmetic difference between total demand minus total non-OPEC supply minus OPEC NGLs. 12 Equals the "Call on OPEC + Stock Ch." with "Miscellaneous to balance" added for historical periods and with an average of "Miscellaneous to balance" for the most recent 8 quarters added for forecast periods.
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Table 1a - World Oil Supply and Demand: Changes from Last Months Table 1 (million barrels per day)
2010 2011 1Q12 2Q12 3Q12 4Q12 2012 1Q13 2Q13 3Q13 4Q13 2013 1Q14 2Q14 3Q14 4Q14 2014
Table 1a WORLD OIL SUPPLY AND DEMAND: CHANGES FROM LAST MONTH'S TABLE 1
OECD DEMAND
Americas Europe Asia Oceania Total OECD
-0.1 -
-0.1 -0.1
0.1
0.1
NON-OECD DEMAND
FSU Europe China Other Asia Latin America Middle East Africa Total Non-OECD
0.1 0.1
0.1 -
-0.1 0.1 -
-0.1 0.1 -
0.1 0.1
0.1 0.1 -
0.1 0.1
0.1 0.1
-0.1 0.1 -
0.1 0.2
0.1
0.1
0.1 0.1
0.1 0.1
0.1 0.1
0.1 0.1
0.1 0.1
NON-OECD SUPPLY
FSU Europe China Other Asia Latin America Middle East Africa Total Non-OECD Processing Gains Global Biofuels Total Non-OPEC
-0.1
-0.1
0.1 -0.1 -
OPEC
Crude NGLs Total OPEC
-0.1
-0.1
0.1
Total Supply
STOCK CHANGES AND MISCELLANEOUS REPORTED OECD Industry Government Total Floating Storage/Oil in Transit Miscellaneous to balance
Total Stock Ch. & Misc
-0.1 -0.1
-0.2 -0.2
-0.1 -0.1
-0.1 -0.1
-0.1 -0.1
-0.1 -0.1
Memo items:
Call on OPEC crude + Stock ch. Adjusted Call on OPEC + Stock ch.
0.1 -
0.1 -
0.2 -
0.1 -
0.1 -
0.1 -
0.1 0.2
0.2 0.2
-0.1 -0.2
-0.2 -0.3
-0.1 -0.2
-0.2 -0.2
-0.2 -0.3
-0.2 -0.2
When submitting their monthly oil statistics, OECD Member countries periodically update data for prior periods. Similar updates to non-OECD data can occur.
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Table 2 SUMMARY OF GLOBAL OIL DEMAND Table 2 - Summary of Global Oil Demand
2011 Demand (mb/d) Americas1 Europe2 Asia Oceania3 Total OECD Asia Middle East Latin America FSU Africa Europe Total Non-OECD World
of which: US50 Europe 5* China Japan India Russia Brazil Saudi Arabia Canada Korea Mexico Iran Total % of World
1Q12
2Q12
3Q12
4Q12
2012
1Q13
2Q13
3Q13
4Q13
2013
1Q14
2Q14
3Q14
4Q14
2014
23.96 14.28 8.23 46.47 20.33 7.43 6.17 4.39 3.48 0.66 42.47 88.94
18.95 8.65 9.31 4.47 3.20 3.21 2.87 2.79 2.27 2.26 2.11 1.77 61.85 69.5%
23.44 13.69 9.18 46.31 20.70 7.27 6.16 4.30 3.65 0.65 42.73 89.03
18.48 8.33 9.46 5.27 3.36 3.19 2.87 2.57 2.19 2.34 2.09 1.80 61.95 69.6%
23.71 13.79 8.07 45.58 20.98 7.79 6.36 4.42 3.63 0.71 43.89 89.47
18.71 8.28 9.56 4.28 3.45 3.24 2.93 3.00 2.23 2.23 2.13 1.82 61.87 69.2%
23.82 13.81 8.33 45.95 20.86 8.16 6.52 4.63 3.65 0.70 44.50 90.46
18.72 8.28 9.78 4.47 3.17 3.41 3.03 3.32 2.34 2.26 2.11 1.69 62.60 69.2%
23.80 13.66 8.78 46.25 21.75 7.48 6.57 4.61 3.74 0.68 44.84 91.08
18.51 8.20 10.26 4.84 3.39 3.35 3.12 2.79 2.38 2.37 2.24 1.68 63.13 69.3%
23.69 13.74 8.59 46.02 21.07 7.68 6.40 4.49 3.67 0.69 43.99 90.01
18.61 8.27 9.77 4.71 3.34 3.30 2.99 2.92 2.29 2.30 2.14 1.75 62.39 69.3%
23.73 13.16 8.92 45.81 21.57 7.46 6.36 4.31 3.81 0.63 44.14 89.95
18.66 7.99 9.95 5.07 3.43 3.20 2.98 2.72 2.28 2.31 2.11 1.73 62.44 69.4%
23.73 13.80 7.90 45.43 21.66 7.85 6.56 4.52 3.76 0.70 45.04 90.46
18.67 8.31 9.96 4.10 3.46 3.34 3.08 3.05 2.26 2.27 2.14 1.74 62.38 69.0%
23.87 13.70 8.15 45.72 21.49 8.35 6.65 4.80 3.76 0.71 45.76 91.48
18.74 8.13 10.18 4.34 3.24 3.58 3.12 3.40 2.33 2.28 2.13 1.72 63.21 69.1%
23.76 13.42 8.59 45.77 22.21 7.73 6.65 4.78 3.87 0.71 45.94 91.71
18.57 7.95 10.47 4.67 3.57 3.49 3.17 2.92 2.31 2.37 2.20 1.70 63.39 69.1%
23.77 13.52 8.39 45.68 21.73 7.85 6.56 4.60 3.80 0.69 45.23 90.91
18.66 8.09 10.14 4.54 3.43 3.40 3.09 3.03 2.29 2.31 2.15 1.72 62.86 69.1%
23.66 13.17 8.80 45.63 22.28 7.64 6.44 4.44 3.94 0.67 45.42 91.05
18.60 7.98 10.39 4.88 3.58 3.33 3.04 2.80 2.29 2.39 2.09 1.76 63.14 69.3%
23.74 13.33 7.76 44.83 22.37 8.10 6.68 4.63 3.97 0.70 46.46 91.29
18.72 7.94 10.35 4.03 3.59 3.44 3.16 3.19 2.23 2.21 2.13 1.75 62.74 68.7%
23.82 13.64 8.07 45.53 22.19 8.57 6.87 4.87 3.96 0.71 47.17 92.70
18.66 8.03 10.49 4.25 3.38 3.65 3.26 3.52 2.35 2.25 2.14 1.73 63.70 68.7%
23.68 13.49 8.53 45.69 22.87 7.96 6.81 4.93 4.05 0.71 47.34 93.03
18.50 7.98 10.85 4.54 3.62 3.62 3.27 3.03 2.32 2.40 2.19 1.72 64.04 68.8%
23.72 13.41 8.29 45.42 22.43 8.07 6.70 4.72 3.98 0.70 46.60 92.02
18.62 7.98 10.52 4.42 3.54 3.51 3.18 3.14 2.30 2.32 2.14 1.74 63.41 68.9%
-0.8 Americas1 -2.8 Europe2 0.6 Asia Oceania3 Total OECD -1.2 Asia 3.4 Middle East 2.0 Latin America 1.5 FSU 6.3 Africa -1.2 Europe -0.2 Total Non-OECD 2.7 World 0.7 Annual Change (mb/d)
-2.8 -3.7 5.8 -1.5 2.4 3.5 3.6 5.9 4.1 3.4 3.3 0.7
0.0 -2.4 7.8 0.5 2.9 4.7 3.5 2.1 3.7 8.6 3.4 1.9
-1.2 -6.0 2.9 -2.0 3.9 3.7 2.7 1.0 7.5 3.0 3.7 0.7
-0.4 -3.0 1.2 -0.9 5.4 1.1 4.8 0.8 6.0 -1.3 4.0 1.5
-1.1 -3.8 4.3 -1.0 3.7 3.2 3.7 2.3 5.3 3.3 3.6 1.2 -0.27 -0.54 0.36 -0.45 0.74 0.24 0.23 0.10 0.19 0.02 1.52 1.07
1.2 -3.9 -2.8 -1.1 4.2 2.6 3.4 0.0 4.4 -2.7 3.3 1.0 0.29 -0.53 -0.26 -0.50 0.87 0.19 0.21 0.00 0.16 -0.02 1.41 0.92 0.00 0.00 0.00 0.00 -0.09 0.02 -0.02 -0.02 0.11 0.00 0.02 0.02 -0.02
0.1 0.1 -2.2 -0.3 3.2 0.7 3.2 2.2 3.5 -1.5 2.6 1.1 0.02 0.01 -0.18 -0.15 0.68 0.06 0.20 0.10 0.13 -0.01 1.15 1.00 -0.10 0.04 0.02 -0.04 0.06 0.03 -0.03 -0.03 0.09 0.01 0.13 0.08 -0.07
0.2 -0.8 -2.1 -0.5 3.0 2.4 2.1 3.7 3.1 2.2 2.8 1.1 0.05 -0.11 -0.17 -0.23 0.62 0.20 0.14 0.17 0.11 0.02 1.26 1.02 0.08 0.07 0.07 0.22 -0.04 0.05 -0.05 0.02 0.06 0.01 0.04 0.26 0.19
-0.2 -1.8 -2.1 -1.0 2.1 3.3 1.1 3.6 3.7 3.7 2.5 0.7 -0.05 -0.24 -0.19 -0.47 0.45 0.25 0.07 0.17 0.14 0.03 1.10 0.63 -0.01 -0.05 -0.02 -0.09 -0.03 -0.01 0.00 -0.02 0.07 0.00 0.01 -0.08 -0.12
0.3 -1.6 -2.3 -0.7 3.1 2.3 2.4 2.5 3.7 0.5 2.8 1.0 0.08 -0.22 -0.20 -0.34 0.66 0.17 0.16 0.11 0.13 0.00 1.23 0.89 -0.01 0.01 0.02 0.02 -0.02 0.02 -0.02 -0.01 0.08 0.01 0.05 0.07 0.00
-0.3 0.1 -1.3 -0.4 3.3 2.5 1.2 3.0 3.4 6.2 2.9 1.2 -0.07 0.01 -0.12 -0.18 0.72 0.18 0.08 0.13 0.13 0.04 1.28 1.10 0.00 -0.03 0.01 -0.02 -0.04 0.03 -0.02 -0.01 0.09 0.00 0.05 0.03 0.01
0.0 -3.4 -1.7 -1.3 3.3 3.2 1.9 2.4 5.6 1.1 3.2 0.9 0.01 -0.47 -0.13 -0.59 0.71 0.25 0.13 0.11 0.21 0.01 1.42 0.83 -0.01 0.05 0.02 0.06 0.04 -0.01 -0.02 -0.02 0.07 0.01 0.08 0.14 0.05
-0.2 -0.4 -1.0 -0.4 3.3 2.7 3.2 1.5 5.3 0.2 3.1 1.3 -0.05 -0.06 -0.09 -0.19 0.70 0.22 0.21 0.07 0.20 0.00 1.41 1.22 0.01 0.03 0.02 0.06 -0.05 0.01 -0.03 -0.01 0.08 0.01 0.01 0.07 -0.19
-0.3 0.5 -0.8 -0.2 3.0 3.0 2.5 3.1 4.6 0.6 3.0 1.4 -0.08 0.06 -0.07 -0.08 0.67 0.23 0.17 0.15 0.18 0.00 1.40 1.32 -0.01 0.03 0.01 0.03 -0.05 0.04 -0.03 -0.01 0.08 0.00 0.03 0.06 0.14
-0.2 -0.8 -1.2 -0.6 3.2 2.8 2.2 2.5 4.7 1.9 3.0 1.2 -0.05 -0.11 -0.10 -0.26 0.70 0.22 0.15 0.12 0.18 0.01 1.38 1.12 0.00 0.02 0.01 0.03 -0.02 0.01 -0.03 -0.01 0.08 0.01 0.04 0.07 0.00
-0.18 -0.67 -0.01 -0.29 -0.10 Americas1 -0.41 -0.53 -0.33 -0.88 -0.42 Europe2 3 0.05 0.50 0.58 0.24 0.11 Asia Oceania Total OECD -0.55 -0.69 0.24 -0.94 -0.41 Asia 0.67 0.48 0.60 0.78 1.11 Middle East 0.14 0.25 0.35 0.29 0.08 Latin America 0.09 0.21 0.22 0.17 0.30 FSU 0.26 0.24 0.09 0.05 0.03 Africa -0.04 0.14 0.13 0.26 0.21 Europe 0.00 0.02 0.06 0.02 -0.01 Total Non-OECD 1.12 1.35 1.44 1.57 1.74 World 0.58 0.65 1.68 0.63 1.32 Revisions to Oil Demand from Last Month's Report (mb/d)
0.00 0.00 0.00 0.00 0.00 0.00 Americas1 0.00 -0.01 0.00 0.00 0.00 0.00 Europe2 0.00 0.00 0.00 0.00 0.00 0.00 Asia Oceania3 Total OECD 0.00 -0.01 0.00 -0.01 0.00 0.00 Asia 0.00 -0.05 0.04 -0.06 -0.07 -0.03 Middle East 0.02 0.02 0.03 0.04 0.03 0.03 Latin America 0.00 -0.02 -0.02 -0.02 -0.02 -0.02 FSU 0.00 -0.01 -0.01 -0.01 -0.02 -0.01 Africa 0.04 0.10 0.10 0.10 0.11 0.10 Europe 0.01 0.00 0.01 0.01 0.00 0.01 Total Non-OECD 0.07 0.04 0.15 0.07 0.04 0.08 World 0.07 0.04 0.15 0.06 0.04 0.07 Revisions to Oil Demand Growth from Last Month's Report (mb/d) World 0.03 0.01 0.10 0.01 -0.09 0.01 1 As of the August 2012 OMR, includes Chile. 2 As of the August 2012 OMR, includes Estonia and Slovenia. 3 As of the August 2012 OMR, includes Israel. * France, Germany, Italy, Spain and UK
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Table 2a 1 OECD OIL Oil DEMAND Table 2a - REGIONAL OECD Regional Demand
(million barrels per day)
Latest month vs. 2011 2012 3Q12 4Q12 1Q13 2Q13 Apr 13 May 13 Jun 13
2
May 13
Jun 12
Americas
LPG&Ethane Naphtha Motor Gasoline Jet/Kerosene Gasoil/Diesel Oil Residual Fuel Oil Other Products Total
Europe
LPG&Ethane Naphtha Motor Gasoline Jet/Kerosene Gasoil/Diesel Oil Residual Fuel Oil Other Products Total
Asia Oceania
LPG&Ethane Naphtha Motor Gasoline Jet/Kerosene Gasoil/Diesel Oil Residual Fuel Oil Other Products Total
OECD
LPG&Ethane Naphtha Motor Gasoline Jet/Kerosene Gasoil/Diesel Oil Residual Fuel Oil Other Products Total 4.97 3.23 14.14 3.76 12.90 2.89 4.59 46.47 4.98 3.29 13.95 3.73 12.69 2.75 4.63 46.02 4.77 3.23 14.22 3.67 12.49 2.73 4.84 45.95 5.12 3.35 13.75 3.82 12.98 2.60 4.63 46.25 5.63 3.42 13.38 3.84 12.74 2.66 4.14 45.81 4.86 3.22 14.10 3.61 12.73 2.34 4.56 45.43 5.08 3.21 13.92 3.67 13.03 2.43 4.40 45.75 4.84 3.18 14.18 3.59 12.69 2.23 4.55 45.27 4.66 3.27 14.21 3.57 12.46 2.37 4.73 45.26 -0.19 0.09 0.02 -0.03 -0.23 0.14 0.17 -0.01 0.02 0.12 -0.16 -0.10 -0.35 -0.34 -0.09 -0.90
1 Demand, measured as deliveries from refineries and primary stocks, comprises inland deliveries, international bunkers and refinery fuel. It includes crude for direct burning, oil from non-conventional sources and other sources of supply. Jet/kerosene comprises jet kerosene and non-aviation kerosene. Gasoil comprises diesel, light heating oil and other gasoils. North America comprises US 50 states, US territories, Mexico and Canada. 2 Latest official OECD submissions (MOS). 3 As of the August 2012 OMR, includes Chile. 4 As of the August 2012 OMR, includes Estonia and Slovenia. 5 As of the August 2012 OMR, includes Israel.
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1 Table 2b - OECD Oil Demand and IN % SELECTED Growth in Demand in Selected OECD Countries OIL DEMAND OECD COUNTRIES
(million barrels per day)
Table 2b
Latest month vs. 2011 2012 3Q12 4Q12 1Q13 2Q13 Apr 13 May 13 Jun 13
2
May 13
Jun 12
United States
LPG Naphtha Motor Gasoline Jet/Kerosene Gasoil Residual Fuel Oil Other Products Total
2.27 2.28 0.25 0.25 8.75 8.71 1.44 1.41 3.90 3.74 0.46 0.34 1.87 1.88 18.95 18.61 0.49 0.74 0.98 0.53 0.44 0.38 0.44 0.47 4.47 0.10 0.38 0.45 0.18 0.66 0.39 0.14 0.09 2.40 0.10 0.08 0.24 0.10 0.49 0.11 0.12 0.24 1.49 0.11 0.14 0.18 0.16 0.69 0.28 0.08 0.17 1.79 0.13 0.03 0.33 0.32 0.45 0.12 0.06 0.14 1.58 0.40 0.08 0.76 0.09 0.30 0.26 0.06 0.31 2.27 0.52 0.72 0.98 0.54 0.45 0.38 0.56 0.57 4.71 0.10 0.38 0.43 0.19 0.70 0.38 0.13 0.08 2.39 0.11 0.09 0.22 0.09 0.45 0.11 0.10 0.20 1.35 0.11 0.13 0.16 0.15 0.68 0.28 0.07 0.15 1.74 0.11 0.02 0.32 0.31 0.45 0.12 0.05 0.12 1.50 0.42 0.09 0.74 0.12 0.30 0.23 0.06 0.32 2.29
2.18 0.22 8.85 1.45 3.66 0.35 2.00 18.72 0.48 0.71 1.03 0.34 0.45 0.33 0.57 0.54 4.47 0.12 0.37 0.43 0.21 0.73 0.33 0.13 0.09 2.41 0.10 0.08 0.23 0.11 0.45 0.10 0.11 0.21 1.38 0.09 0.14 0.17 0.17 0.69 0.26 0.06 0.15 1.73 0.09 0.02 0.31 0.31 0.45 0.13 0.05 0.12 1.49 0.40 0.10 0.75 0.14 0.31 0.21 0.06 0.37 2.34
2.44 0.26 8.54 1.38 3.75 0.25 1.88 18.51 0.51 0.74 0.99 0.65 0.47 0.39 0.54 0.55 4.84 0.09 0.40 0.42 0.18 0.69 0.47 0.13 0.07 2.44 0.11 0.09 0.21 0.08 0.44 0.12 0.09 0.18 1.33 0.11 0.09 0.15 0.15 0.69 0.30 0.06 0.15 1.71 0.09 0.03 0.31 0.32 0.47 0.12 0.04 0.10 1.47 0.46 0.09 0.72 0.13 0.29 0.25 0.05 0.38 2.38
2.68 0.28 8.42 1.35 3.93 0.37 1.62 18.66 0.59 0.77 0.92 0.77 0.45 0.42 0.57 0.56 5.07 0.11 0.42 0.39 0.16 0.64 0.40 0.13 0.04 2.30 0.13 0.09 0.19 0.08 0.40 0.12 0.07 0.19 1.28 0.14 0.15 0.14 0.14 0.65 0.34 0.07 0.13 1.75 0.09 0.04 0.30 0.32 0.44 0.12 0.05 0.12 1.48 0.49 0.08 0.73 0.12 0.32 0.22 0.04 0.29 2.28
2.11 0.28 8.91 1.43 3.77 0.26 1.90 18.67 0.46 0.70 0.94 0.38 0.44 0.32 0.38 0.48 4.10 0.12 0.39 0.44 0.19 0.72 0.45 0.12 0.08 2.51 0.10 0.10 0.19 0.09 0.42 0.11 0.08 0.18 1.28 0.10 0.15 0.16 0.16 0.69 0.27 0.06 0.16 1.75 0.14 0.03 0.31 0.31 0.47 0.13 0.05 0.14 1.56 0.36 0.10 0.78 0.13 0.31 0.22 0.04 0.30 2.26
2.25 0.25 8.78 1.42 3.88 0.28 1.75 18.62 0.51 0.74 0.94 0.46 0.44 0.34 0.40 0.50 4.32 0.13 0.39 0.45 0.18 0.74 0.51 0.12 0.07 2.59 0.11 0.11 0.20 0.09 0.42 0.11 0.08 0.19 1.30 0.12 0.15 0.16 0.15 0.72 0.31 0.07 0.13 1.81 0.12 0.03 0.30 0.35 0.47 0.13 0.05 0.15 1.60 0.39 0.09 0.75 0.12 0.31 0.20 0.06 0.30 2.22
2.04 0.29 8.98 1.43 3.77 0.20 1.89 18.60 0.48 0.68 0.94 0.37 0.44 0.32 0.36 0.53 4.10 0.12 0.40 0.44 0.19 0.69 0.42 0.13 0.07 2.46 0.11 0.09 0.19 0.09 0.43 0.11 0.08 0.17 1.27 0.10 0.15 0.16 0.16 0.67 0.27 0.06 0.17 1.74 0.14 0.02 0.29 0.31 0.44 0.12 0.05 0.13 1.50 0.36 0.10 0.79 0.15 0.30 0.26 0.03 0.31 2.31
2.04 0.29 8.97 1.44 3.67 0.30 2.07 18.79 0.40 0.68 0.94 0.30 0.44 0.31 0.38 0.43 3.88 0.11 0.38 0.44 0.20 0.72 0.42 0.11 0.09 2.49 0.09 0.10 0.20 0.10 0.42 0.12 0.07 0.17 1.27 0.09 0.16 0.16 0.16 0.68 0.22 0.06 0.18 1.72 0.16 0.02 0.33 0.29 0.49 0.12 0.04 0.14 1.60 0.33 0.10 0.80 0.12 0.32 0.22 0.04 0.31 2.23
0.00 0.00 -0.01 0.01 -0.10 0.10 0.18 0.18 -0.08 0.00 0.00 -0.06 0.01 -0.02 0.02 -0.10 -0.22 0.00 -0.02 0.01 0.01 0.03 0.01 -0.02 0.02 0.03 -0.01 0.01 0.01 0.00 0.00 0.01 -0.02 0.01 0.00 -0.01 0.01 0.00 0.01 0.01 -0.05 0.01 0.01 -0.02 0.02 0.00 0.04 -0.02 0.05 0.00 0.00 0.01 0.10 -0.03 0.00 0.01 -0.02 0.01 -0.04 0.00 -0.01 -0.08
-0.05 0.05 -0.07 -0.11 -0.06 -0.07 0.12 -0.19 -0.06 0.02 0.01 -0.01 0.00 -0.02 -0.13 -0.05 -0.24 0.01 0.04 0.00 0.00 0.01 -0.07 -0.02 0.00 -0.03 0.00 -0.01 -0.05 0.01 -0.07 0.03 -0.03 -0.02 -0.14 0.00 0.01 -0.02 0.00 -0.04 -0.02 -0.01 0.01 -0.07 0.05 -0.01 0.01 0.00 0.03 0.01 0.00 0.01 0.09 0.00 0.01 0.05 0.03 -0.01 0.03 -0.03 -0.05 0.03
Japan
LPG Naphtha Motor Gasoline Jet/Kerosene Diesel Other Gasoil Residual Fuel Oil Other Products Total
Germany
LPG Naphtha Motor Gasoline Jet/Kerosene Diesel Other Gasoil Residual Fuel Oil Other Products Total
Italy
LPG Naphtha Motor Gasoline Jet/Kerosene Diesel Other Gasoil Residual Fuel Oil Other Products Total
France
LPG Naphtha Motor Gasoline Jet/Kerosene Diesel Other Gasoil Residual Fuel Oil Other Products Total
United Kingdom
LPG Naphtha Motor Gasoline Jet/Kerosene Diesel Other Gasoil Residual Fuel Oil Other Products Total
Canada
LPG Naphtha Motor Gasoline Jet/Kerosene Diesel Other Gasoil Residual Fuel Oil Other Products Total
1 Demand, measured as deliveries from refineries and primary stocks, comprises inland deliveries, international bunkers and refinery fuel. It includes crude for direct burning, oil from non-conventional sources and other sources of supply. Jet/kerosene comprises jet kerosene and non-aviation kerosene. Gasoil comprises diesel, light heating oil and other gasoils. 2 Latest official OECD submissions (MOS). 3 US figures exclude US territories.
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2012
2013
2014
1Q13
2Q13
3Q13
4Q13
1Q14
Jun 13
Jul 13
Aug 13
OPEC
Crude Oil Saudi Arabia Iran Iraq UAE Kuwait Neutral Zone Qatar Angola Nigeria Libya Algeria Ecuador Venezuela Total Crude Oil Total NGLs1 Total OPEC
9.51 3.00 2.95 2.65 2.46 0.54 0.74 1.78 2.10 1.39 1.17 0.50 2.50 31.30 6.28 37.58 6.49 6.74
9.01 2.70 3.03 2.67 2.55 0.52 0.74 1.76 2.00 1.38 1.15 0.50 2.44 30.44 6.35 36.79
9.29 2.68 3.16 2.72 2.56 0.52 0.73 1.76 1.94 1.31 1.14 0.51 2.52 30.83 6.40 37.22 6.57 6.63 6.70
9.39 2.70 3.05 2.73 2.56 0.52 0.73 1.78 1.88 1.15 1.12 0.52 2.50 30.62 6.40 37.01
9.74 2.65 3.06 2.75 2.54 0.52 0.73 1.73 1.92 1.00 1.15 0.52 2.47 30.77 6.57 37.34
9.93 2.68 3.17 2.72 2.51 0.52 0.73 1.70 1.90 0.55 1.12 0.52 2.47 30.51 6.57 37.08
NON-OPEC
OECD 6 Americas United States5 Mexico Canada Chile 7 Europe UK Norway Others 8 Asia Oceania Australia Others Total OECD
15.86 9.17 2.92 3.76 0.01 3.46 0.94 1.91 0.60 0.56 0.48 0.08 19.88
17.07 10.16 2.87 4.03 0.01 3.25 0.86 1.81 0.58 0.50 0.42 0.08 20.82
18.00 10.91 2.84 4.24 0.01 3.18 0.85 1.79 0.54 0.51 0.44 0.07 21.69
16.81 9.81 2.91 4.07 0.02 3.33 0.89 1.83 0.61 0.45 0.37 0.08 20.59
16.68 10.05 2.88 3.74 0.01 3.27 0.88 1.82 0.58 0.49 0.42 0.08 20.45
17.17 10.28 2.86 4.02 0.01 3.03 0.78 1.70 0.56 0.54 0.46 0.08 20.74
17.62 10.49 2.85 4.27 0.01 3.36 0.91 1.88 0.57 0.52 0.45 0.08 21.51
17.88 10.67 2.86 4.33 0.01 3.34 0.91 1.86 0.56 0.46 0.38 0.07 21.68
16.61 10.01 2.89 3.70 0.01 3.11 0.83 1.69 0.58 0.51 0.43 0.08 20.23
17.16 10.31 2.85 3.99 0.01 3.37 0.84 1.96 0.57 0.53 0.46 0.08 21.06
17.37 10.34 2.88 4.14 0.01 2.84 0.77 1.52 0.55 0.54 0.46 0.08 20.75
NON-OECD
Former USSR Russia Others Asia China Malaysia India Indonesia Others Europe Latin America Brazil5 Argentina Colombia Others Middle East Oman Syria Yemen Others Africa Egypt Gabon Others Total Non-OECD Processing Gains4 Global Biofuels5
3
13.66 10.73 2.92 7.77 4.18 0.67 0.91 0.89 1.12 0.14 4.18 2.16 0.66 0.95 0.42 1.46 0.92 0.17 0.18 0.18 2.29 0.73 0.25 1.31 29.49 2.14 1.86 53.36 90.94
13.79 10.82 2.97 7.68 4.15 0.67 0.91 0.84 1.11 0.14 4.23 2.15 0.63 1.02 0.42 1.39 0.95 0.07 0.16 0.21 2.37 0.71 0.24 1.43 29.59 2.18 1.95 54.55
13.78 10.81 2.97 7.76 4.25 0.69 0.88 0.80 1.13 0.13 4.47 2.34 0.61 1.10 0.41 1.37 0.96 0.04 0.16 0.20 2.60 0.66 0.24 1.70 30.10 2.21 2.10 56.11
13.84 10.82 3.02 7.80 4.20 0.69 0.90 0.87 1.14 0.14 4.15 2.07 0.64 1.01 0.43 1.43 0.94 0.11 0.18 0.21 2.28 0.73 0.23 1.32 29.65 2.18 1.48 53.89 90.69
13.79 10.86 2.94 7.76 4.24 0.65 0.89 0.87 1.12 0.14 4.17 2.10 0.64 1.00 0.43 1.34 0.94 0.07 0.12 0.21 2.33 0.72 0.23 1.38 29.54 2.16 1.97 54.11 91.33
13.74 10.81 2.93 7.52 4.04 0.65 0.92 0.83 1.08 0.13 4.22 2.15 0.63 1.02 0.42 1.40 0.97 0.06 0.16 0.21 2.39 0.70 0.24 1.44 29.40 2.20 2.30 54.64
13.78 10.80 2.99 7.64 4.14 0.68 0.91 0.82 1.09 0.13 4.36 2.28 0.62 1.04 0.41 1.38 0.96 0.05 0.17 0.21 2.49 0.68 0.24 1.57 29.78 2.18 2.06 55.53
13.77 10.82 2.96 7.75 4.23 0.69 0.89 0.82 1.11 0.13 4.40 2.29 0.62 1.07 0.42 1.37 0.95 0.05 0.17 0.21 2.57 0.67 0.24 1.65 29.99 2.21 1.72 55.60
13.86 10.88 2.98 7.80 4.28 0.67 0.90 0.85 1.11 0.14 4.24 2.20 0.64 0.97 0.43 1.39 0.97 0.06 0.15 0.21 2.40 0.72 0.25 1.44 29.84 2.20 1.96 54.23 91.24
13.79 10.77 3.02 7.56 4.08 0.66 0.92 0.83 1.08 0.14 4.16 2.07 0.65 1.02 0.42 1.42 0.98 0.06 0.17 0.21 2.44 0.71 0.25 1.48 29.51 2.22 2.23 55.02 92.36
13.66 10.89 2.77 7.43 3.98 0.63 0.93 0.83 1.08 0.13 4.25 2.17 0.62 1.03 0.42 1.41 0.98 0.06 0.17 0.21 2.33 0.71 0.24 1.38 29.23 2.22 2.32 54.51 91.59
1 Includes condensates reported by OPEC countries, oil from non-conventional sources, e.g. Venezuelan Orimulsion (but not Orinoco extra-heavy oil), and non-oil inputs to Saudi Arabian MTBE. Orimulsion production reportedly ceased from January 2007. 2 Comprises crude oil, condensates, NGLs and oil from non-conventional sources 3 Includes small amounts of production from Jordan and Bahrain. 4 Net volumetric gains and losses in refining and marine transportation losses. 5 As of the July 2010 OMR, Global Biofuels comprise all world biofuel production including fuel ethanol from the US and Brazil. 6 As of the August 2012 OMR, includes Chile. 7 As of the August 2012 OMR, includes Estonia and Slovenia. 8 As of the August 2012 OMR, includes Israel.
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Table 4 1 ble 4 - OECD Industry Stocks and Quarterly Stock Changes/OECD OECD INDUSTRY STOCKS AND QUARTERLY STOCK CHANGES GovernmentControlled Stocks and Quarterly Stock Ch Land in Selected
RECENT MONTHLY STOCKS
in Million Barrels
Mar2013 Apr2013 May2013 Jun2013 Jul2013*
2
STOCK CHANGES
in mb/d
3Q2012 4Q2012 1Q2013 2Q2013
Jul2012
OECD Americas Crude Motor Gasoline Middle Distillate Residual Fuel Oil 3 Total Products Total
4
-0.10 -0.06 0.16 -0.01 0.27 0.26 -0.12 0.06 0.13 0.03 0.19 0.05
-0.10 0.32 0.08 -0.03 0.09 -0.22 -0.04 -0.01 -0.06 0.01 -0.06 -0.16
0.28 -0.06 -0.20 0.03 -0.43 -0.24 0.05 0.08 0.03 0.04 0.12 0.20
-0.20 0.00 0.03 0.00 0.37 0.28 -0.04 -0.08 -0.10 -0.03 -0.26 -0.33
OECD Europe Crude Motor Gasoline Middle Distillate Residual Fuel Oil 3 Total Products Total
4
OECD Asia Oceania Crude 166.8 Motor Gasoline 27.9 Middle Distillate 63.9 Residual Fuel Oil 20.1 3 Total Products 173.4 Total
4
161.1 27.4 62.2 20.4 171.7 410.2 1009.2 379.7 507.2 151.3 1372.3 2676.2
167.0 27.7 57.8 20.7 164.7 405.9 1010.4 369.4 498.1 144.4 1354.0 2654.5
168.0 27.5 60.9 19.7 167.5 409.5 979.9 376.3 503.0 142.4 1378.0 2650.6
167.4 27.3 66.4 21.0 174.4 414.5 969.0 374.5 517.5 141.7 1401.4 2658.6
169.3 24.4 59.5 20.0 168.4 407.5 1003.6 374.1 596.5 157.5 1472.0 2772.3
165.3 25.4 67.2 21.2 177.6 414.3 966.3 367.7 571.2 145.5 1433.3 2702.3
176.2 27.3 64.6 20.9 173.1 424.3 997.7 364.3 524.7 144.4 1407.6 2717.3
0.00 0.02 0.08 0.02 0.20 0.16 -0.22 0.01 0.36 0.03 0.65 0.46
-0.13 -0.04 -0.09 -0.02 -0.16 -0.33 -0.27 0.27 -0.07 -0.03 -0.12 -0.72
0.09 0.04 0.04 0.00 0.03 0.18 0.41 0.05 -0.14 0.07 -0.28 0.14
0.01 0.00 -0.03 -0.01 -0.06 -0.04 -0.23 -0.09 -0.10 -0.03 0.04 -0.09
Total OECD Crude Motor Gasoline Middle Distillate Residual Fuel Oil 3 Total Products Total
4
STOCK CHANGES
in mb/d
3Q2012 4Q2012 1Q2013 2Q2013
Jul2012
OECD Asia Oceania Crude 389.6 Products 21.0 Total OECD Crude Products Total
4
* estimated 1 Stocks are primary national territory stocks on land (excluding utility stocks and including pipeline and entrepot stocks where known) and include stocks held by industry to meet IEA, EU and national emergency reserve commitments and are subject to government control in emergencies. 2 Closing stock levels. 3 Total products includes gasoline, middle distillates, fuel oil and other products. 4 Total includes NGLs, refinery feedstocks, additives/oxygenates and other hydrocarbons. 5 Includes government-owned stocks and stock holding organisation stocks held for emergency purposes.
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Table 5
Table 5 - Total Stocks on Land in OECD Countries/Total OECD Stocks ('millions of barrels' and 'days')
End June 2012 End September 2012
Stock Level Days Fwd2 Demand Stock Days Fwd Level Demand
OECD Americas Canada Chile Mexico United States4 Total4 OECD Asia Oceania Australia Israel Japan Korea New Zealand Total 5 OECD Europe Austria Belgium Czech Republic Denmark Estonia Finland France Germany Greece Hungary Ireland Italy Luxembourg Netherlands Norway Poland Portugal
Slovak Republic Slovenia
170.1 10.3 45.3 1809.4 2057.1 40.8 601.3 176.7 8.0 826.8 21.5 38.6 18.6 19.5 1.2 28.0 163.7 279.6 28.9 15.9 10.5 137.7 0.6 112.6 27.4 62.7 20.4 9.0 4.6 132.8 29.0 35.2 64.0 82.5 1344.5
6
73 29 21 97 87 36 135 78 56 99 79 65 89 122 49 145 95 116 93 115 82 100 11 111 127 118 86 109 83 104 92 146 89 55 97 92 149
179.6 9.8 48.8 1819.4 2079.6 42.8 605.7 183.8 8.9 841.3 21.6 38.3 18.9 21.2 1.1 28.2 164.0 283.0 30.1 15.6 9.5 146.2 0.7 113.5 27.0 62.8 20.8 8.8 5.2 130.8 30.2 36.7 63.4 75.4 1353.1 4274.0 -
76 27 22 98 87 37 125 78 58 96 86 60 96 138 39 139 96 116 104 113 67 110 13 115 108 119 97 108 97 105 95 135 93 51 99 92 150
173.2 8.9 47.5 1807.8 2059.5 37.5 590.2 175.4 7.8 811.0 22.9 38.7 20.2 21.3 1.5 26.3 162.3 287.1 30.8 15.1 10.3 128.8 0.7 121.3 27.9 63.9 21.3 8.5 5.3 120.1 27.6 36.8 62.0 80.9 1341.8 4212.2 -
76 25 23 97 87 34 116 76 49 91 97 57 118 147 55 136 93 125 112 123 77 101 12 128 126 139 97 119 111 101 91 147 104 55 102 92 148
164.1 9.5 48.7 1794.2 2038.6 37.5 589.2 187.6 9.0 823.3 22.5 37.7 20.3 23.7 1.6 36.6 160.9 290.5 32.0 16.6 10.0 133.6 0.7 132.5 25.6 63.3 23.1 8.7 5.0 123.8 28.7 36.5 62.0 79.2 1375.2 4237.1 -
72 25 23 96 86 33 144 82 60 104 85 60 107 152 72 188 92 116 109 123 82 104 11 129 104 132 93 120 97 104 88 142 86 51 99 93 149
163.7 9.3 50.0 1818.7 2063.8 39.7 585.8 182.3 8.8 816.6 22.0 39.4 18.5 22.0 2.3 38.2 165.5 288.0 26.4 15.4 10.5 127.0 0.6 123.1 23.3 61.0 21.7 8.6 5.2 117.1 27.6 36.7 63.9 80.5 1344.8 4225.1 -
86 100 98 92 159
Spain Sweden Switzerland Turkey United Kingdom Total Total OECD DAYS OF IEA Net Imports
4228.4 -
1 Total Stocks are industry and government-controlled stocks (see breakdown in table below). Stocks are primary national territory stocks on land (excluding utility stocks and including pipeline and entrepot stocks where known) they include stocks held by industry to meet IEA, EU and national emergency reserves commitments and are subject to government control in emergencies. 2 Note that days of forward demand represent the stock level divided by the forward quarter average daily demand and is very different from the days of net imports used for the calculation of IEA Emergency Reserves. 3 End June 2013 forward demand figures are IEA Secretariat forecasts. 4 US figures exclude US territories. Total includes US territories. 5 Data not available for Iceland. 6 Reflects stock levels and prior calendar year's net imports adjusted according to IEA emergency reserve definitions (see www.iea.org/netimports.asp). Net exporting IEA countries are excluded.
2Q2010 3Q2010 4Q2010 1Q2011 2Q2011 3Q2011 4Q2011 1Q2012 2Q2012 3Q2012 4Q2012 1Q2013 2Q2013
4330 4306 4244 4210 4251 4201 4145 4191 4228 4274 4212 4237 4225
1566 1553 1565 1562 1565 1529 1536 1536 1539 1542 1547 1578 1574
2765 2753 2679 2648 2686 2671 2608 2655 2689 2732 2665 2659 2651
91 90 90 93 91 90 90 92 92 92 92 93 92
33 33 33 34 33 33 33 34 34 33 34 35 34
58 58 57 58 57 57 56 58 59 59 58 59 58
1 Includes government-owned stocks and stock holding organisation stocks held for emergency purposes. 2 Days of forward demand calculated using actual demand except in 2Q2013 (when latest forecasts are used).
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Table 6 - IEA Member Country Destinations of Selected Crude Streams IEA MEMBER COUNTRY DESTINATIONS OF SELECTED CRUDE STREAMS1
(million barrels per day)
Table 6
2010 2011 2012 Saudi Light & Extra Light Americas Europe Asia Oceania Saudi Medium Americas Europe Asia Oceania Saudi Heavy Americas Europe Asia Oceania Iraqi Basrah Light2 Americas Europe Asia Oceania Iraqi Kirkuk Americas Europe Asia Oceania Iranian Light Americas Europe Asia Oceania Iranian Heavy Americas Europe Asia Oceania
3
0.69 0.66 1.21 0.36 0.00 0.34 0.02 0.00 0.22 0.36 0.09 0.29 0.03 0.27 0.24 0.04 0.49 0.52
0.69 0.83 1.24 0.37 0.02 0.40 0.02 0.01 0.20 0.29 0.11 0.34 0.07 0.27 0.23 0.04 0.55 0.51 0.18 0.02 0.76 0.05 0.82 0.12 0.07 0.01 0.01 1.69 0.53 0.45 0.05 0.18 0.14 -
0.76 0.85 1.26 0.44 0.05 0.45 0.05 0.12 0.20 0.49 0.26 0.33 0.05 0.22 0.12 0.02 0.16 0.33 0.13 0.02 0.01 0.69 0.08 0.73 0.14 0.04 0.03 0.00 1.86 0.24 0.58 0.04 0.12 0.25 0.00
0.67 0.97 1.21 0.41 0.05 0.48 0.02 0.21 0.19 0.46 0.42 0.39 0.04 0.21 0.05 0.01 0.08 0.11 0.14 0.01 0.77 0.11 0.76 0.13 0.05 0.03 0.01 1.97 0.25 0.72 0.03 0.14 0.26 0.00
0.65 0.77 1.27 0.43 0.02 0.44 0.02 0.13 0.19 0.55 0.31 0.31 0.03 0.25 0.05 0.01 0.04 0.36 0.16 0.06 0.73 0.04 0.74 0.17 0.04 0.04 1.94 0.14 0.58 0.03 0.21 0.23 -
0.69 0.67 1.22 0.44 0.49 0.08 0.20 0.56 0.18 0.35 0.01 0.19 0.10 0.01 0.02 0.39 0.17 0.03 0.60 0.06 0.63 0.15 0.05 0.03 1.85 0.14 0.65 0.02 0.07 0.21 -
0.66 0.88 1.20 0.44 0.02 0.34 0.06 0.20 0.20 0.26 0.26 0.35 0.01 0.21 0.10 0.01 0.25 0.09 0.01 0.62 0.08 0.67 0.16 0.03 0.02 0.02 1.93 0.15 0.46 0.05 0.12 0.21 -
0.81 0.65 1.25 0.42 0.02 0.32 0.02 0.20 0.21 0.29 0.23 0.41 0.03 0.23 0.09 0.03 0.07 0.03 0.62 0.07 0.64 0.14 0.08 0.03 2.03 0.47 0.03 0.13 0.30 -
0.55 0.94 1.23 0.48 0.01 0.27 0.15 0.19 0.18 0.21 0.29 0.31 0.19 0.09 0.01 0.42 0.09 0.57 0.11 0.67 0.13 0.00 0.02 0.02 2.07 0.23 0.46 0.08 0.11 0.18 -
0.62 1.05 1.11 0.42 0.01 0.43 0.01 0.20 0.20 0.27 0.26 0.33 0.21 0.11 0.27 0.18 0.68 0.05 0.70 0.19 0.01 0.02 0.02 1.68 0.21 0.45 0.04 0.13 0.15 -
0.93 1.11 1.15 0.37 0.05 0.37 0.11 0.13 0.17 0.61 0.41 0.46 0.12 0.24 0.21 0.01 0.19 0.50 0.02 0.50 0.10 0.63 0.14 0.01 0.02 1.69 0.41 0.56 0.00 0.21 -
-0.32 -0.06 -0.04 0.05 -0.04 0.06 -0.09 0.07 0.02 -0.34 -0.16 -0.13 -0.02 -0.10 -0.23 0.17 -0.05 0.07 0.05 0.00 0.00 -0.02 -0.20 -0.11 0.03 -0.06 -
Venezuelan Light & Medium Americas 0.14 Europe 0.02 Asia Oceania Venezuelan 22 API and heavier Americas 0.86 Europe 0.06 Asia Oceania Mexican Maya Americas Europe Asia Oceania Mexican Isthmus Americas Europe Asia Oceania Russian Urals Americas Europe Asia Oceania Nigerian Light4 Americas Europe Asia Oceania Nigerian Medium Americas Europe Asia Oceania 0.91 0.11 0.04 0.02 0.08 1.80 0.60 0.34 0.25 0.09 -
1 Data based on monthly submissions from IEA countries to the crude oil import register (in '000 bbl), subject to availability. May differ from Table 8 of the Report. IEA Americas includes United States and Canada. IEA Europe includes all countries in OECD Europe except Estonia, Hungary and Slovenia. IEA Asia Oceania includes Australia, New Zealand, Korea and Japan. 2 Iraqi Total minus Kirkuk. 3 Iranian Total minus Iranian Light. 4 33 API and lighter (e.g., Bonny Light, Escravos, Qua Iboe and Oso Condensate).
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Table 7 - Regional OECD Imports REGIONAL OECD IMPORTS1,2 Table 16 - Refined Product Yields Based on Total Input (thousand barrels per day)
2010 Crude Oil Americas Europe Asia Oceania Total OECD LPG Americas Europe Asia Oceania Total OECD Naphtha Americas Europe Asia Oceania Total OECD Gasoline Americas Europe Asia Oceania Total OECD Jet & Kerosene Americas Europe Asia Oceania Total OECD Gasoil/Diesel Americas Europe Asia Oceania Total OECD Heavy Fuel Oil Americas Europe Asia Oceania Total OECD Other Products Americas Europe Asia Oceania Total OECD Total Products Americas Europe Asia Oceania Total OECD Total Oil Americas Europe Asia Oceania Total OECD
3
Table 7
2011
2012
3Q12
4Q12
1Q13
2Q13
Apr 13
May 13
Jun 13
7494 6870 6101 9072 8988 9346 6473 6609 6761 23038 22468 22208
803 85 91 978
809 85 94 987
731 76 69 876
76 418 45 539
77 397 58 532
73 398 63 534
99 456 55 609
86 465 82 634
84 421 57 561
83 408 61 552
95 428 44 567
73 427 65 564
49 453 41 543
9625 8995 8028 12588 12504 12751 8670 8880 9194 30883 30380 29973
1 Based on Monthly Oil Questionnaire data submitted by OECD countries in tonnes and converted to barrels. 2 Excludes intra-regional trade. 3 Includes additives.
66
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OMR Contacts
Editor and Head, Oil Industry and Markets Division Antoine Halff Analysts Toril Bosoni (Refining) Charles Esser (Non-OPEC Supply) Diane Munro (OPEC Supply and Prices) Matt Parry (Demand) Andrew Wilson (Stocks/Statistics) Statistics Valerio Pilia Editorial Assistant Annette Hardcastle Contact:
(+33) 0*1 40 57 66 67
OilMarketReport@iea.org
* 0 - only within France
Media Enquiries
IEA Press Office
(+33) 0* 1 40 57 65 54
ieapressoffice@iea.org
(+33) 0* 1 40 57 67 72 (+33) 0* 1 40 57 66 90
The Oil Market Report is published under the responsibility of the Executive Director and Secretariat of the International Energy Agency. Although some of the data are supplied by Member-country Governments, largely on the basis of information received from oil companies, neither governments nor companies necessarily share the Secretariats views or conclusions as expressed therein. OECD/IEA 2013