US Spot NGLs mostly Lower Early while Oil Futures Advance
5/15 12:38 PM
US Spot NGLs mostly Lower Early while Oil Futures Advance HOUSTON (DTN) -- U.S. spot NGLs prices moved mostly down in early trade at the major supply hubs Wednesday with propane sharply lower following the release of Energy Information Administration data showing a much larger-than-anticipated increase in propane/propylene inventories in the week-ended May 10. At 10:30 AM ET, the EIA reported U.S. commercial crude oil supplies increased 5.4 million bbl in the week to 472 million bbl, which is up 39.7 million bbl or 9.2% from the same time in 2018. The American Petroleum Institute Tuesday reported domestic crude supplies surged 8.6 million bbl in the week. EIA data showed total U.S. motor gasoline inventories at 225 million bbl, down 1.1 million bbl from the week prior and 7 million bbl or 3% below the year-ago level. The API reported total U.S. motor gasoline stocks rose 567,000 bbl in the week profiled. At 11:50 AM ET, New York Mercantile Exchange June WTI crude oil futures were up 25cts at $62.03 bbl while nearby NYMEX RBOB futures were 3.83cts higher at $2.0150 gallon. Intercontinental Exchange July Brent futures were up 73cts in late-morning trade at $71.97 bbl as the Brent-WTI spread widened to $9.94 bbl, a near three-month high. EIA data showed U.S. inventories of propane/propylene increased about 2.8 million bbl in the week-ended May 10 to 62.7 million bbl, with exports at a record high and refiner and blender production at the second highest level on record. A DTN survey on Tuesday showed market expectations for a 2.0 million stock build in the week. At 62.7 million bbl on May 10, U.S. propane/propylene stocks were up 22.4 million bbl or 55% from the same time in 2018 and about 19% above the five-year average for the same time of year. Gulf Coast PADD 3 propane/propylene inventories climbed 1.6 million bbl in the week-ended May 10 at 45.4 million bbl while Midwest PADD 2 stocks rose 600,000 bbl to 12.1 million bbl, EIA data shows. Versus the same time in 2018, Gulf Coast PADD 3 propane/propylene supplies are up 21.2 million bbl or 87% and Midwest PADD 2 stocks are up 1.2 million bbl or 11%. EIA data shows U.S. propane/propylene exports in the week-ended May 10 at a record-high 1.347 million bpd, up from 1.304 million bpd in the week prior. Four-week average exports were at 1.319 million bpd compared with 852,000 bpd in the same period in 2018. Four-week average imports were at 125,000 bpd versus 130,000 bpd in the same period last year. EIA reported refiner and blender net production of propane/propylene for the week at 2.115 million bpd, up 52,000 bpd from the week prior and 235,000 bpd or 13% above the year-ago level. Refiner and blender propane/propylene production in the week was at the second highest level on record, below only the 2.145 million bpd produced in the week-ended Dec. 28, 2018. At Mont Belvieu, LST spot propane and Enterprise spot propane both hit one-week lows in late morning trade Wednesday, with the former down 1.875cts at 60.125cts gallon while the latter had slid 1.75cts at 59.2cts gallon. Enterprise spot propane was valued near midday at 40.1% of nearby WTI crude futures, down from 40.5% at the same time last week. Conway spot propane traded at a near two-week low 52.5cts gallon, down 1.5cts from the day prior. EIA data showed implied demand for propane/propylene in the week-ended May 10 at 500,000 bpd, which compared with 730,000 bpd in the week prior and 1.022 million bpd in the same week last year. Four-week average implied demand was at 654,000 bpd versus 969,000 bpd in the same period last year. In Canada, Sarnia spot propane was heard at 68.0cts gallon, up 0.75cts from the day prior. In other NGLs spot markets, Mt. Belvieu non-LST normal butane and Conway normal butane both traded at one-week lows, with the former down 1.625cts at 64.375cts while the latter dropped 1.75cts to 55.75cts gallon. Non-LST isobutane was down 2.0cts in late-morning trade at 65.0cts gallon, a one-week low, and Conway isobutane slid 1.0cts at 59.0cts gallon. Mt. Belvieu non-LST natural gasoline traded at 125.75cts gallon, up 0.5cts, while Conway edged 0.25cts lower at 118.0cts gallon. Mt. Belvieu e/p mix was assessed at 14.625cts gallon, down 0.625cts, and Conway e/p mix was valued 0.25cts lower at 9.625cts gallon. Gulf Coast purity ethane slid 0.375cts at 21.375cts gallon, a 5-1/2 week low. In related markets, NYMEX June natural gas futures were down 4.2cts in late morning trade at $2.617 MMBtu. Alton Wallace, 1.832.646.9229, Alton.Wallace@dtn.com, www.dtn.com, (c) 2019 DTN. All rights reserved.