Excerpt from this report:
Product Markets and Refining Operations
“Product markets in the Atlantic Basin showed a mixed performance bearish sentiment fueled by the approaching end of the driving season caused US refinery margins to drop, while in Europe, margins remained healthy on the back of some recovery in the middle of the barrel. Asian margins showed a slight recovery in middle distillates on strong regional
demand amid some run cuts, partially easing concerns over product oversupply
“Bearish sentiment dominated the dirty tanker market in August with freight rates for VLCCs, Suezmax and Aframax registering a drop from the previous month. Freight rates declined, mainly as a result of tonnage availability while tonnage demand remains limited. Average clean tanker freight rates were down mainly on the back of lower freight rates and
market activity in west of Suez. In August, OPEC spot fixtures rose to average 12.20 mb/d,and OPEC sailings increased to stand at 24.11mb/d.”
“OECD commercial oil stocks rose further in July to stand at 2,925mb. At this level, they were 202mb higher than the latest five-year average, with crude and products indicating a surplus of around 163mb and 39mb, respectively. In terms of days of forward cover, OECD commercial stocks stood at 63.3 days, 4.8 days above the latest five-year average.”
Commentary: Nothing really new here. But, nicely spelled out with charts and graphs to really see trends. It goes into many areas of the global economy including commodities and economic growth projections.