September 9, 2010 at 11:09 pm #2538
OPEC: Oversupplied Oil Product Markets To Keep Refinery Runs Low
First Published Thursday, 9 September 2010 11:50 am – 2010 Dow Jones
By Lananh Nguyen Of DOW JONES NEWSWIRES
LONDON -(Dow Jones)- Global refinery runs are forecast to stay low in the coming months amid high stockpiles of oil products worldwide, the Organization of Petroleum Exporting Countries said Thursday.
“In an oversupplied market characterized by depressed demand, refining operation levels are not expected to rise significantly in the coming months,” the producer group said in its September monthly oil market report.
August refining margins fell in the U.S., Europe and Asia, as the supply glut offset better demand during the U.S. summer driving season, when consumption typically peaks.
“Uncertainties about the pace of economic growth and product stocks considerably above historical levels at the end of the driving season kept pressure on product markets, mainly in the Atlantic basin,” OPEC said.
In the U.S. Gulf Coast, the refining margin for West Texas Intermediate crude fell to $4.12 a barrel in August, from $5.25 a barrel in July.
“The approaching end of the peak driving season and the growing overhang in inventories made refiners reduce throughputs in a failed effort to recover margins lost in July,” OPEC said.
In Europe, a weak gasoline market pulled the margin for Brent crude in Rotterdam down to $2 a barrel compared with $2.40 a barrel the previous month. Middle distillates products like diesel and gasoil were more resilient due to refinery run cuts, summer travel demand and lower Russian volumes.
The margin for Dubai crude oil in Singapore fell to $1.40 a barrel in August from $1.70 a barrel in July.
-By Lananh Nguyen, Dow Jones Newswires; +44 (0)20-7842-9479; firstname.lastname@example.org
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