US Spot Propane near Flat Midday after Bullish Stock Data
ORANGE BEACH, Ala. (DTN) -- U.S. spot NGLs moved shallowly mixed at the key
supply hubs in midday trade Wednesday with propane prices near flat despite a
smaller-than-expected increase in domestic inventories reported midmorning by
the Energy Information Administration for the week-ended July 13.
At 10:30 AM ET, EIA reported U.S. propane/propylene inventories increased
about 1.7 million bbl during the week profiled to 65.3 million bbl, with the
data showing a surprising decline in Gulf Coast PADD 3 stocks.
A DTN survey showed expectations that domestic propane/propylene stocks
would climb 2.85 million bbl in the week.
Gulf Coast PADD 3 propane/propylene inventories dropped about 500,000 bbl
during the week-ended July 13 to 34.7 million bbl, which was down about 2.5
million bbl or 6.7% versus the same time in 2017, EIA data shows.
Total U.S. propane/propylene stocks were down about 500,000 bbl or 0.7%
versus the same time last year.
EIA data shows U.S. propane/propylene exports for the week-ended July 13 at
762,000 bpd, down from 796,000 bpd in the week prior. Four-week average exports
were at 723,000 bpd compared with 649,000 bpd in the same period last year.
"The drop in Gulf Coast propane inventory reported by EIA doesn't seem
consistent with their number for exports, which was about the same as the
export number for the week before," said a market source. "You'd think there
would have been a build of some kind on the Gulf Coast --- maybe only a small
one -- if exports were under 800,000 bpd," he said.
Midwest PADD 2 propane/propylene stocks rose about 1.3 million bbl in the
week to 21.7 million bbl, which was up about 1.2 million bbl or 5.9% versus the
Supplies in East Coast PADD 1 surged 800,000 bbl in the week to 5.8 million
bbl and are up 600,000 bbl or 11.5% year-over-year.
EIA data showed U.S. crude oil supplies, excluding those in the Strategic
Petroleum Reserve, jumped 5.8 million bbl in the week-ended July 13 to 411.1
million bbl, which followed a 12.6 million bbl decline in the week prior.
The American Institute Tuesday reported crude stocks rose 629,000 bbl during
the week-ended July 13.
EIA data showed total domestic motor gasoline inventories dropped about 3.2
million bbl during the week to 235.8 million bbl while the API reported
domestic stocks increased 425,000 bbl.
Near midday, NYMEX August West Texas Intermediate crude oil futures were up
27cts at $66.11 bbl and nearby RBOB futures were 0.61cts higher at $2.0322
Spot propane traded actively at the Enterprise supply hub early Wednesday
with 240,000 bbl transacted near midday while at the LST deal-volume was at
only 20,000 bbl. At the Conway supply hub, 55,000 bbl, had transacted midday.
At Mont Belvieu, LST spot propane and Enterprise spot propane both traded
flat, with the former at 87.25cts gallon and the latter at 87.375cts gallon.
Enterprise spot propane was valued near midday at 55.5% of nearby WTI crude
futures, down slightly from 55.7% at the same time last week.
Targa spot propane traded midmorning at 86.0cts gallon.
Conway spot propane changed hands near midday at 68.75cts gallon, down
0.25cts gallon, its discount to Enterprise spot propane at 18.375cts per gallon.
In Canada, Sarnia spot propane was heard flat at 82.0cts gallon.
EIA data showed U.S. propane/propylene imports at 85,000 bpd in the
week-ended July 13, down from 117,000 bpd in the week prior. Four-week average
imports were at 99,000 bpd versus 102,000 bpd in the same period last year.
Agency data showed implied demand for propane/propylene in the week-ended
July 13 at 1.029 million bpd, which compared with 923,000 bpd in the week prior
and 701,000 bpd reported in the same week last year.
Refiner and blender net production of propane/propylene was at 1.944 million
bpd in the week, up from 1.940 million bpd in the week prior and 1.842 million
bpd in the same week last year.
In other U.S. NGLs spot markets, Mt. Belvieu non-LST normal butane edged
0.375cts higher early Wednesday at 112.625cts gallon while Conway normal butane
advanced 1.5cts at 79.0cts gallon.
Non-LST isobutane dropped 3.5cts to 108.5cts gallon, a 10-week low, and
Conway isobutane slid 1.5cts at 95.0cts gallon, a near 3-1/2 month low.
Mt. Belvieu non-LST natural gasoline traded 0.5cts higher at 146.0cts while
Conway natural gasoline was seen fresh 3-1/2 week low at 124.375cts gallon,
down 1.625cts on the session.
Mt. Belvieu e/p mix was assessed 0.25cts lower at 32.75cts gallon, and
Conway e/p mix edged down 0.125cts at 10.875cts gallon.
Gulf Coast purity ethane traded at 36.25cts gallon, down 0.25cts.
In related markets, NYMEX August natural gas futures were down 0.5cts in
midday trade at $2.735 MMBtu.
Alton Wallace, 1.832.646.9229, Alton.Wallace@dtn.com, www.dtn.com.
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