JAPAN DATA: Crude stocks hit 8-month high as run rates slashed

14 Jul 2021

Quantum Commodity Intelligence - Japan's crude stocks hit an 8-month high of 74 million barrels in the week ending July 10 after refiners cut throughput and available capacity, according to Petroleum Association Japan data Wednesday.

The figures come amid a rise in Covid cases across the country and the imposition of a new state of emergency in capital Tokyo.

Crude stocks jumped 1.8%, or 1.329 million barrels, from the previous week, while inventories of both finished and unfinished products dropped.

Refiners cut crude throughput 1.9% and available capacity 3.4% over the week, leaving crude throughput at 14.6 million barrels, down 0.287 million barrels, while the average available topper unit capacity was 16.09 million barrels, down 0.564 million barrels.

The resulting 10% drop in refinery production to 14.298 million barrels saw products inventories drawn down by 0.5% to 65.73 million barrels, with the largest drops coming for gasoline and low sulfur fuel oils.

Gasoline stocks were at a near 2-month low of 12.763 million barrels after a 6.3% weekly drop, the largest since October 2019.

Implied domestic demand, which is net of any imports, showed gasoline and diesel consumption dropping by 4% and 0.5% to 5.205 million barrels and 3.641 million barrels respectively.

However, jet and kerosene consumption was at least 21.3% and 46.1% higher at implied figures of 0.406 million barrels and 0.714 million barrels.