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POST DOE WRAP: NYMEX futures are mixed despite crude inventory decrease
HOUSTON, May 3, 2017 (PCW) -- NYMEX crude and products futures prices were mixed Wednesday after government figures showed a moderate decrease in crude stocks, and a small build in gasoline.
The US remains long in crude, gasoline, and diesel. Refinery crude inputs nationwide were lower, and exports of products were healthy; domestic gasoline demand is still stubbornly below last year.
As of 9:57 am CDT, June NYMEX WTI fell $0.11/bbl to $47.55/bbl; June gasoline rose 0.76 cpg to 152.12 cpg; and May diesel dropped 0.11 cpg to 146.70 cpg.
Crude inventories are lower
The US Energy Information Administration statistics for the week ending April 28 showed 0.9 million barrel decrease in crude inventories to 527.8 million barrels (“near the upper limit of the average range,” per the EIA). This is the fourth week in a row that inventories have decreased.
Domestic crude oil production was put at 9.293 million b/d, up 28,000 for the week, and 468,000 higher versus the same period last year.
Imports of crude were off 648,000 b/d to about 8.3 million b/d on the week. Over the past four weeks, crude imports averaged 8.2 million b/d, an increase of 4.9% compared to last year at this time.
Gasoline imports fall
Gasoline imports were put at 693,000 b/d, down from 916,000 the previous week; for the same period last year the figure was 946,000. Distillate imports were 112,000 b/d, up from 54,000 on the week; the figure for last year was 126,000 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 19.6 million b/d, down 2.4% versus the same period last year.
Total gasoline inventories (including blendstocks) were up 0.2 million barrels to 241.2 million (“near the upper limit of the average range,” per the EIA), 0.6 million below last year. Demand was 9.2 million b/d over the past four weeks, off 2.7% from the same period last year.
Distillate stocks decrease
Distillate stocks totaled 150.4 million barrels (“in the upper half of the average range”), off 0.6 million compared with last week, and 6.6 million below last year. Distillate demand over the past four weeks was 4.2 million b/d, up 3.3% compared with the same period last year.
Propane/propylene inventories on the week were 39.7 million barrels (“in the lower half of the average range”), essentially flat on the week, and lower by 32.2 million versus last year.
Total US refinery inputs averaged 17.2 million b/d, down 108,000 b/d compared with the previous week. Inputs of crude oil nationwide to refineries were dowlower by 0.1 percentage points to 94.5%.
Exports are higher
Also, net exports of all products were put at 2.704 million b/d, up 245.000 for the week, 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 9.783 million b/d. Distillate demand was 4.2 million b/d, but production was 5.101 million. -- Robert Sharp