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POST DOE WRAP: NYMEX futures fall after crude inventory increase
HOUSTON, March 22, 2017 (PCW) -- NYMEX crude and products futures prices were off Wednesday after government figures showed an increase in crude stocks.
The US remains long in crude, gasoline and diesel. Refinery crude inputs were higher (especially in the Gulf Coast), and exports of products were healthy; gasoline demand is recovering, but still below last year.
Crude imports were higher, perhaps significantly; domestic production has increased despite relatively low prices.
As of 10:10 am CDT, May NYMEX WTI fell $0.82/bbl to $47.42/bbl; May gasoline dropped 1.08 cpg to 160.62 cpg; and April diesel decreased 1.70 cpg to 149.33 cpg.
Crude inventories up 0.5m barrels
The US Energy Information Administration statistics for the week ending March 17 showed a 5 million barrel increase in crude inventories to a record 533.1 million barrels. It was the eleventh consecutive weekly increase. Domestic crude oil production was put at 9.109 million b/d, up 20,000 b/d for the week, and 91,000 b/d higher versus the same period last year.
Imports of crude were up 902,000 b/d to about 8.3 million b/d on the week. Over the past four weeks, crude imports averaged 7.9 million b/d, a decrease of 3.0% compared to last year at this time.
Gasoline imports were put at 325,000 b/d, down from 572,000 tb/d he previous week; for the same period last year the figure was 415,000 b/d. Distillate imports were 127,000 b/d, up from 79,000 b/d on the week; the figure for last year was 93,000 b/d (typically the US imports products to the US East Coast and exports from the US Gulf Coast).
Overall demand rises 0.5 percent week on week
Total product demand over the past four weeks was put at 19.5 million b/d, up 0.5 percent versus the same period last year.
Total gasoline inventories (including blendstocks) were down 2.8 million barrels to 243.5 million barrels (“near the upper half of the average range,” per the EIA), 1.6 million barrels below last year. Demand was 9.1 million b/d over the past four weeks, off 2.9% from the same period last year.
Distillate stocks totaled 155.4 million barrels (“in the upper half of the average range”), off 1.9 million barrels compared with last week, and 6.9 million barrels below last year. Distillate demand over the past four weeks was 4.1 million b/d, up 14.1% compared with the same period last year.
Propane/propylene inventories fall 0.1 million barrels
Propane/propylene inventories on the week were 44.3 million barrels (“in the middle of the average range”), down 0.1 million barrels on the week, and lower by 17.9 million barrels versus last year.
Total US refinery inputs averaged 15.8 million b/d, up 329,000 b/d compared with the previous week. Inputs of crude oil nationwide to refineries were up 2.3 percentage points on the week to 87.4% of capacity. In the Gulf Coast (PADD III), inputs were up 3.1 percentage points to 89.0%.
Also, net exports of all products were put at 2.807 million b/d, off 8,000 b/d for the week, but still a very bullish number. The US needs to export products to keep inventories manageable.
While domestic gasoline demand was put at 9.1 million b/d, total gasoline production came in at 9.771 million b/d. Distillate demand was 4.1 million b/d, but production was 4.829 million b/d. -- Robert Sharp