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POST DOE WRAP: Crude, products shoot higher after oil stocks drop
HOUSTON, May 9, 2018 (PCW) -- NYMEX crude and products were markedly higher early Wednesday after government figures showed a decrease in crude stocks.
No doubt the sanctions the US has placed on Iran were also a major factor.
As of 9:55 am CDT, June NYMEX WTI rose $1.83/bbl to $70.89/bbl; June gasoline climbed 4.47 cpg to 215.61 cpg; and June diesel increased 5.54 cpg to 221.31 cpg.
The last time front month WTI closed above $70/bbl was November 26, 2014.
Total domestic product demand remained very good, up 2.7% on the year. Product exports fell, but are still healthy. Inventories of gasoline and diesel are below last year's levels. Crude imports were markedly lower on a weekly basis, but close to last year on a four-week basis.
Crude exports fell but are still high; crude production was essentially flat.
Crude inventories fall 2.2 million barrels
The US Energy Information Administration statistics for the week ending May 4 showed a 2.2 million barrel decrease in commercial crude inventories to 433.8 million barrels (“in the lower half of the average range,” per the EIA).
Domestic crude oil production was put at 10.703 million b/d, up 84,000 b/d for the week, and up 1.389 million b/d versus the same period last year.
Imports of crude were down 1.226 million b/d to 7.3 million b/d on the week. Over the past four weeks, crude imports averaged 8.1 million b/d, off 1.0% compared to last year at this time.
Total gasoline imports were put at 803,000 b/d, down from 923,000 b/d last week; for the same period last year the figure was 953,000 b/d. Distillate imports were 129,000 b/d, up from 76,000 b/d on the week; the figure for last year was 115,000 b/d (typically the US imports the greatest volume of products to the US East Coast and exports from the US Gulf Coast (with some exports from the US West Coast, and at times, the East Coast).
Total product demand rises 2.7%
Total product demand over the past four weeks was put at 20.3 million b/d, up 2.7% versus the same period last year.
Total gasoline inventories (including blendstocks) were down 2.2 million barrels to 235.8 million barrels (“in the upper half of the average range”), but 5.3 million barrels below last year. Gasoline demand was 9.5 million b/d over the past four weeks, up 2.2% from the same period last year.
Distillate stocks totaled 115 million barrels (in the lower half of the average range”), down by 3.8 million barrels compared with last week, and 31.5 million barrels below last year. Distillate demand over the past four weeks was 4.2 million b/d, up 4.1% compared with the same period last year.
Propane stocks are up 2.3 million barrels
Propane/propylene inventories on the week were 38.7 million barrels (“in the lower half of the average range”), higher by 2.3 million barrels and lower by 3.0 million barrels versus last year.
Total US refinery crude inputs on the week averaged 16.5 million b/d, down by 75,000 b/d, to 90.4% of capacity. In PADD 3 (the Gulf Coast) runs were off 1.3 percentage points to 89.7%.
Net exports of all products were 2.283 million b/d, down 497,000 b/d for the week, still a bullish number. The US typically needs to export products to keep inventories manageable.
While domestic gasoline demand was put at 9.5 million b/d, total gasoline production came in at 9.974 million b/d. Distillate demand was 4.2 million b/d, production at 4.993 million b/d.
Crude exports fall 271,000 barrels
Exports of crude oil were 1.877 million b/d, down 271,000 barrels from last week; one year ago the figure was 693,000 barrels. -- Robert Sharp