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CORRECTION: POST DOE WRAP: Crude rises as oil supplies drop, gasoline declines
Corrects today's crude oil price, headline and first paragraph.
HOUSTON, September 27, 2017 (PCW) -- NYMEX crude prices rose Wednesday after government figures showed a decrease in crude stocks.
As of 10:48 am CDT/span>, November NYMEX WTI was up $0.21/bbl at $52.09/bbl; November gasoline fell 2.70 cpg to 162.21 cpg; and November diesel decreased 0.68 cpg to 183.16 cpg.
Finished gasoline and distillate inventories (diesel and heating oil) are markedly lower than last year; it is not clear how long it will take to rebuild them in the post-storm period.
The refining complex shows that things are getting back to normal, which also includes healthy exports.
Crude inventories fall 1.8 million barrels
TThe US Energy Information Administration statistics for the week ending September 22 showed a 1.8 million barrel decrease in commercial crude inventories to 471.0 million barrels (“in the upper half of the average range,” per the EIA). It was the first decline in four weeks.
Domestic crude oil production was put at 9.547 million b/d, up 37,000 b/d for the week, and 1.050 million b/d higher versus the same period last year./p>
Imports of crude were up 59,000 b/d to 7.4 million b/d on the week. Over the past four weeks, crude imports averaged 7.1 million b/d, a decrease of 9.3% compared to last year at this time.
Total gasoline imports were put at 1.041 million b/d, up from 687,000 b/d the previous week; for the same period last year the figure was 778,000 b/d. Distillate imports were 84,000 b/d, down from 85,000 b/d on the week; the figure for last year was 144,000 b/d (typically the US imports products to the US East Coast and exports from the US Gulf Coast).
Total product demand is up 1.3%
Total product demand over the past four weeks was put at 20.3 million b/d, up 1.3% versus the same period last year.
Total gasoline inventories (including blendstocks) were up 1.1 million barrels to at 217.3 million barrels (“in the upper half of the average range”), 9.9 million barrels below last year. Only a few weeks ago, on August 16, gasoline inventories were 1.6 million barrels below last year.
Gasoline demand was 9.4 million b/d over the past four weeks, up 0.6% from the same period last year.
Distillate stocks totaled 138.0 million barrels (in the lower half of the average range”), down 800,000 barrels compared with last week, and 26.1 million barrels below last year. Distillate demand over the past four weeks was 4.0 million b/d, up 13.9% compared with the same period last year.
Propane stocks fall 2.4 million barrels
Propane/propylene inventories on the week were 78.4 million barrels (“in the middle of the average range”), off 2.4 million barrels on the week, but lower by 24.9 million barrels versus last year.
Total US refinery crude inputs on the week averaged 16.2 million b/d, up by 1.0 million b/d, 88.6% of capacity, higher by 3.4 percentage points. In PADD 3 (the Gulf Coast) runs were up 11.9 percentage points to 84.9%.
Also, net exports of all products were put at 1.679 million b/d, down 776,000 b/d for the week, a number that, while healthy, reflects the need to rebuild stocks, especially of diesel. The US typically needs to export products to keep inventories manageable.
While domestic gasoline demand was put at 9.4 million b/d, total gasoline production came in at 9.855 million b/d. Distillate demand was 4.0 million b/d, but production was 4.639 million b/d.
Crude exports rise
Exports of crude oil were 1.491 mlllion b/d, up from 928,000 b/d from the previous week; one year ago the figure was 507,000 b/d. -- Robert Sharp