Olive & Oil 03/10/2011

Gray future for the Spain of oil

The summer ended with a series of negative records that shade long shadows on the imminent oil season

In August the oil market was stuck, even more than the last years, with a decrease in the operations of the 54% in the week between the 6th and the 12th of August, with falling prices.

The extra virgin lost the 2.27% of its price arriving at 1.9euro/kg, the virgin the 1.53% arriving at 1.74 euro/kg and the lampante the 0.73%, arriving at 1.63euro/kg.

If you think it is reductive the analysis of a single week, it is enough to look at another piece of data. From July the 12th to August the 12th, the volumes exchanged where below 25,000 tons, the 53% less than the previous month.

The producers try to think positive, hoping in a 7% increment in sales in the next oil campaign, for a total sale of 1,027,400 tons, which would be surely positive, also considering that the export volume reached the 600,000 tons.

All the same the market is nervous, since the stocks are massive, over 808,600 tons at the end of June, the 21% more that the average of the last four years.

This enormous quantity of oil is distributed between the presses (638,800 tons) and the rest of the chain (169,800 tons), composed by packagers, refiners and other operators. This data are way higher that the last seasons as well.

di T N