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POST DOE WRAP: NYMEX WTI rises with crude inventory decrease
HOUSTON, November 23, 2016 (PCW) -- NYMEX crude and products futures prices were higher early Wednesday after government figures that showed a draw in crude stocks.
The US, remains long in crude, gasoline, and diesel. Refinery crude inputs were up, reflecting the end of the turnaround season. Crude imports remain high.
Domestic demand rose, and export volumes of products were still bullish, although less so.
As of 9:51 am CST, January NYMEX WTI rose $0.21/bbl to $48.24/bbl; December gasoline was up 1.46 cpg to 144.42 cpg and December diesel was up 1.30 cpg to 153.93/gal
Crude inventories are down 1.3 million bbls
The US Energy Information Administration statistics for the week ending November 18 showed a 1.3 million barrel decrease in crude inventories to 489.0 million barrels (“at the upper limit of the average range,” per the EIA). It was the first drop in the past five weeks. Domestic crude oil production was put at 8.690 million b/d, up 9,000 for the week, but 475,000 lower versus the same period last year.
Imports of crude were down 845,000 b/d to 7.6 million b/d on the week. Over the past four weeks, crude imports averaged 8.1 million b/d, an increase of 13.3% compared with last year at this time.
Gasoline imports are up
Gasoline imports were put at 855,000 b/d, up from 821,000 the previous week; for the same period last year the figure was 459,000. Distillate imports were 136,000 b/d, down from 169,000 b/d on the week; the figure for last year was 130,000 b/d (typically the US imports products to the US East Coast and exports from the US Gulf Coast).
Total product demand over the past four weeks was put at 19.9 million b/d, up 1.6% versus the same period last year.
Total gasoline inventories (including blendstocks) were up 2.3 million barrels at 224 million (“well above the upper limit of the average range,” per the EIA), 7.3 million over last year. Demand was 9.2 million b/d over the past four weeks, up 0.6% from the same period last year.
Distillate stocks rose 0.3 million barrels to 149.2 million (“well above the upper limit of the average range,” per the EIA), 7.9 million over last year. Distillate demand over the past four weeks was 4.0 million b/d, up 1.9% compared with the same period last year.
Propane stocks rise
Propane/propylene inventories on the week were 102.7 million barrels, up 1.8 million on the week, and down 3.5 million versus last year (“near the upper limit of the average range”).
Total US refinery inputs averaged 16.4 million b/d, up 271,000 b/d compared to the previous week. Inputs of crude oil nationwide to refineries on a percentage basis were up 1.6% on the week, put at 90.8 % of capacity. In the Gulf Coast (PADD III), inputs were up 1.7% to 92.8%.
Also, net exports of all products were put at 1.970 million b/d, down 304,000 for the week, but still a bullish number. The US needs to export products to keep inventories manageable.
While domestic gasoline demand was put at 9.2 million b/d, total gasoline production came in at 9.7 million b/d. Distillate demand was 4.0 million b/d, but production was 5.080 million. -- Robert Sharp