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POST DOE WRAP: Crude and product stocks fall; NYMEX up

HOUSTON, MAY 11, 2016 (PCW) -- NYMEX crude and products futures prices shot up early Wednesday after government figures showed a decrease in crude and product inventories.

Crude oil production on the year is down well over half a million b/d, as well. The US however remains very long in crude, gasoline and diesel. Refinery crude input volumes increased nationwide. Gasoline and diesel demand is good, and net exports were up as well.

As of 9:53 am CST, June NYMEX WTI was up $0.82/bbl to $45.48/bbl, June gasoline rose 4.41 cpg to 152.98 cpg and June diesel was up 3.44 cpg to 137.12 cpg.

Crude inventories are up

The US Energy Information Administration statistics for the week ending May 6 showed a 3.4 million barrel decrease in crude inventories to 540 million barrels. Domestic crude oil production was put at 8.802 million b/d, down 23,000 b/d for the week, and 572,000 b/d lower versus the same period last year.

This is the twelfth week in the past 13 that crude production has fallen (still, those inventories are “historically high” for this time of year, per the EIA).

Imports of crude were down 5,000 b/d to 7.7 million b/d on the week. Over the past four weeks, crude imports averaged 7.8 million b/d, an increase of 8.4% compared to last year at this time.

Total product demand over the past four weeks was put at 20.1 million b/d, up 3.5% versus the same period last year.

Gasoline inventories fall

Total gasoline inventories were down 1.2 million barrels to 240.6 million (still “well above the upper limit of the average range,” per the EIA). Demand was 9.5 million b/d over the past four weeks, up 5.1% from the same period last year.

Distillate stocks fell 1.6 million barrels to 155.3 million (“well above the upper limit of the average range,” per the EIA). Distillate demand over the past four weeks was up 0.7% to 4.1 million b/d compared to the same period last year.

Propane/propylene inventories on the week were up 1.3 million barrels to 73.2 million barrels, 4.7 million barrels over last year.

Refinery runs rise

Total US refinery inputs were 16.2 million b/d, up 193,000 b/d compared to the previous week. However, inputs of crude oil nationwide to refineries on a percentage basis were down 0.6% on the week at 89.1% of capacity. In the Gulf Coast (PADD III), inputs fell 3.3% to 89.3%.

Also, net exports of all products were put at 1.566 million b/d, up 156,000 b/d for the week, a moderately bullish number. The US needs to export products to keep inventories manageable. -- Robert Sharp

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