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POST DOE WRAP: NYMEX futures are mixed as crude stocks gain
HOUSTON, September 13, 2017 (PCW) -- NYMEX crude and products futures prices were mixed early Wednesday, after government figures showed an increase in crude stocks.
The dampening effects of Hurricane Harvey caused still lower refinery runs in the Gulf Coast; those refineries are coming back on line.
As of 10:05 am CDT, October NYMEX WTI was up $0.46/bbl at $48.69/bbl; October gasoline fell 0.29 cpg to 165.34 cpg; and October diesel decreased 0.18 cpg to 174.09 cpg.
The US remains well supplied in crude, gasoline, and diesel; product exports remained were hurt however, likely a short term situation.
Crude inventories rise 5.9 million barrels
The US Energy Information Administration statistics for the week ending September 8 showed a 5.9 million barrel increase in commercial crude inventories to 468.2 million barrels (“in the upper half of the average range,” per the EIA).
Domestic crude oil production was put at 9.353 million b/d, up 572,000 for the week, and 860,000 higher versus the same period last year.
Imports of crude were off 603,000 b/d to 6.1 million on the week. Over the past four weeks, crude imports averaged 7.6 million b/d, a decrease of 7.4% compared to last year at this time.
Total gasoline imports were put at 556,000 b/d, up from 475,000 the previous week; for the same period last year the figure was 650,000. Distillate imports were 136,000 b/d, up from 110,000 on the week; the figure for last year was 140,000 b/d (typically the US imports products to the US East Coast and exports from the US Gulf Coast).
Total product demand is off 0.8%
Total product demand over the past four weeks was put at 20.4 million b/d, off 0.8% versus the same period last year.
Total gasoline inventories (including blendstocks) were off 8.4 million barrels to at 218.3 million (“in the upper limit of the average range”), 10.1 million below last year. Demand was 9.6 million b/d over the past four weeks, oup 0.2% from the same period last year.
Distillate stocks totaled 144.6 million barrels (in the middle of the average range”), down 3.2 million compared with last week, and 18.2 million below last year. Distillate demand over the past four weeks was 4.1 million b/d, up 9.9% compared with the same period last year.
Propane/propylene inventories on the week were 82.2million barrels (“in the middle of the average range”), up 2.3million on the week, but lower by 18.9 million versus last year.
Total crude input drops 0.4 million b/d
Total US refinery crude inputs on the week averaged 14.5 million b/d, down by 394,000 b/d, 77.7% of capacity, lower by 2.0 percentage points. In PADD 3 (the Gulf Coast) runs were down 2.7 percentage points to 60.7%.
Also, net exports of all products were put at 1.008 million b/d, off 197,000 for the week, a bearish number, likely an anomaly. The US typically needs to export products to keep inventories manageable.
However this week exports were not needed to balance inventories. While domestic gasoline demand was put at 9.6 million b/d, total gasoline production came in at 9.888 million. Distillate demand was 4.1 million b/d, but production was 3.973 million.
Crude exports rise
Exports of crude oil were 774,000 b/d, up from 153,000 from the previous week; one year ago the figure was 418,000. -- Robert Sharp