Chinese Refiners Have Logistical Concerns About Buying Russian Crude
November 17, 2022
Prices are lower to start today as Poland issued a statement saying there were no indications that Russia was the cause of the missile on Tuesday. The Druzhba pipeline that transports oil and natural gas from Russia to Europe will be up and running full strength soon also easing prices.
The propane inventory report had supplies up 73,000 barrels putting total stocks at 87.813 million barrels and last year they were 74.568 million a 13.245 million barrels surplus to last year. Midwest stocks were up 283,000 barrels putting Midwest stock at 25.463 million and last year they were 24.855 million a 608,000 barrels surplus to last year. Gulf Coast supplies were down 660,000 barrels putting Gulf Coast stocks at 48.113 million and last year they were 35.744 million a 12.369 million barrel surplus.
The DOE inventory report had crude oil supplies down 5.4 million barrels putting total stocks at 435.355 and last year they were 433.003 and 2.352 million barrels surplus to last year. This draw in crude was a surprise compared with most estimates for a much smaller decline. Gasoline supplies were up 2.21 million barrels putting total stocks at 207.94 and last year they were 211.996 a 4.056 million barrel deficit to last year. Distillate supplies were up 1.12 million barrels putting total stocks at 107.383 million and last year they were 123.685 a 16.302 million deficit to last year.
China’s state-owned refiners have reported concerns about the logistics of continuing to buy oil from Russia after the EU ban kicks in December 5, according to a Bloomberg report. Right now, the consensus seems to be that Russian oil sales could be impacted in a minor way short term but will continue despite the bans. Volumes will be down some but not seriously.