MARKETWIRE ALERTS
Barani Krishnan
DTN Refined Fuels Market Reporter
MARKETWIRE ALERTS
MarketWire Afternoon News Sept 2:
Updated at 5:00 PM ET
HEADLINES:
- Valero Port Arthur Reports Power Outage, Unit Upsets
- Group 3 CBOB Basis Climbs 8.5cts, Diverges Midwest Declines
- Midwest ULSD Basis Up After Thin Inventory Hike
- EIA to Publish WPSR on Sept. 10 Due to Labor Day Holiday
- Storm Edouard Causes Flaring at Motiva Port Arthur Refinery
- Record-Low Distillates Stocks Leave East Coast Exposed
- EIA: PADD 5 Gasoline, Distillates Stocks Hit 3-Month Low
- Analysis: SPR Releases Set to Slow as Hurdles Mount
- EIA: PADD 2 Distillates at 7-Wk Peak, Gasoline 5-Wk High
- EIA: PADD 1 Distillate Stocks at All-Time Low; Gasoline Up
- EIA: PADD 3 Jet Fuel Stocks Fall to 3-Month Low
- Chevron To Expand Venezuelan Acreage, Eyes $7B Investment
- EIA: Ethanol Stocks Edge Lower on Week, Up 11% on Year
- EIA: Propane/Propylene Stocks Record First Draw in 8 Wks
- EIA: Gasoline Stocks Fall to Nearly 10-Month Low
NEWS
Valero Port Arthur Reports Power Outage, Unit Upsets
Valero Energy reported a 24-hour emissions event at its 360,000 bpd Port
Arthur refinery in Texas after a partial third-party power outage caused by
Tropical Storm Edouard resulted in several process upsets, according to a
filing with the Texas Commission on Environmental Quality (TCEQ).
The event occurred from 4:02 p.m. CT Tuesday (9/1) through 4:02 p.m.
Wednesday (9/2), with material routed to Flare 23 and Flare 26 to minimize
emissions.
Affected units included a crude distillation unit, two delayed cokers, a
diesel hydrotreater, two hydrocracking units and a saturated gas recovery unit,
according to the filing.
Estimated sulfur dioxide emissions totaled 16,704.63 pounds from Flare 23
and 2,928.03 pounds from Flare 26. The filing also reported emissions of
hydrogen sulfide, propane, butane, propylene and other compounds.
Valero said the refinery immediately began making process adjustments to
stabilize operations and stop the flaring.
The Port Arthur refinery primarily produces gasoline, diesel, jet fuel and
other refined products.
DTN reached out to Valero Energy for additional details but did not get an
immediate response.
Group 3 CBOB Basis Climbs 8.5cts, Diverges Midwest Declines
Group 3 CBOB differentials surged Wednesday (9/2) into positive territory,
defying broad weakness across Midwest pipeline networks where cash values faced
downward pressure following a weekly rise in regional inventory.
Group 3 CBOB basis surged by 8.5cts on the day to stand at a premium of
6.25cts gallon over the October NYMEX RBOB contract. The rise extends the
physical strength of late in Group 3 CBOB, since NYMEX RBOB's front-month moved
to October from September.
In contrast, CBOB differentials on the Chicago market weakened by 3.5cts to
a discount of 15cts gallon against the October NYMEX benchmark.
CBOB differentials on the Buckeye Complex market widened by 3cts to an 11cts
gallon discount to October futures, while Wolverine CBOB dropped 7cts on the
day to a 15cts gallon discount.
In NYMEX trading, October RBOB settled down $0.0313 at $3.1038 gallon. The
U.S. Energy Information Administration reported that PADD 2 motor gasoline
stocks rose100,000 bbl during the week ended August 28 to a five-week high of
43.4 million bbl.
PADD 2 refinery utilization rose to 103.5% last week from 101.8% the prior
week, maintaining ample supplies of secondary gasoline blendstock across
Midwest markets.
Midwest ULSD Basis Up After Thin Inventory Hike
Midwest ultra-low sulfur diesel (ULSD) differentials strengthened broadly
Wednesday (9/2) after a thin weekly inventory rise reported by the U.S. Energy
Information Administration suggested continued supply tightness.
Chicago ULSD basis led the regional push higher, narrowing by 6cts to stand
at a discount of 5cts gallon to the October NYMEX ULSD contract.
ULSD differentials on the Buckeye Complex and Wolverine markets tracked
Chicago's strength, each narrowing by 6cts on the day to match at a 5cts gallon
discount to the NYMEX benchmark.
In the Plains, Group 3 ULSD basis edged higher, narrowing by 0.5cts to a
5cts gallon discount against the benchmark.
The firming across physical markets comes as regional refiners continue
prioritizing distillate output ahead of peak harvest demand.
In NYMEX trading, October ULSD settled virtually flat, up $0.0049 at $4.6822
gallon. EIA weekly inventory data released Wednesday showed PADD 2 distillates
stocks rose 200,000 bbl to a seven-week peak of 28.8 million bbl during the
week ended August 28.
PADD 2 refinery utilization climbed to 103.5% last week, above the 101.8%
recorded in the prior week, keeping physical production high even as midstream
constraints persist.
ULSD prices are up across the board in U.S. cash and futures as global
distillate supply remains severely constrained from multi-front disruptions,
pushing cracks for the product to record highs.
EIA to Publish WPSR on Sept. 10 Due to Labor Day Holiday
The Energy Information Administration said Wednesday (9/2) it will delay
its Weekly Petroleum Status Report (WPSR) by one day next week due to the U.S.
Labor Day holiday.
The WPSR, typically released at 10:30 a.m. Wednesday, will be published at
12:00 p.m. on Thursday, September 10. The holiday falls on Monday, September 7.
The separate "Gasoline and Diesel Fuel Update", typically released on
Tuesdays, will next be published at 10:00 a.m. ET on Wednesday, September 9,
the agency added.
Storm Edouard Causes Flaring at Motiva Port Arthur Refinery
Motiva Enterprises reported an emissions event at its 656,400 bpd Port
Arthur refinery in Texas after severe weather associated with Tropical Storm
Edouard caused unexpected interruptions and shutdowns of several critical
pieces of equipment, according to a filing with the Texas Commission on
Environmental Quality.
The event occurred Tuesday (9/1) between 4:45 p.m. and 8:30 p.m. CT, lasting
three hours and 45 minutes.
Affected equipment included the No. 3 fluid catalytic cracking unit (FCCU),
No. 4 catalytic reforming unit, No. 4 hydrotreater, Alkylation 4 and the lube
hydrocracking unit, with emissions routed through several flare stacks. The
FCCU and catalytic reforming and alkylation units are particularly associated
with gasoline production.
The largest reported release was approximately 2,076 pounds of sulfur
dioxide from the No. 3 FCCU regenerator. Additional emissions were reported
from the refinery's flare systems.
Motiva said the refinery took immediate action to stabilize affected process
units and minimize flaring and emissions following the weather-related
disruption.
The Port Arthur refinery primarily produces gasoline, diesel, jet fuel and
other petroleum products.
DTN reached out to Motiva Enterprises for additional details but did not get
an immediate response.
Record-Low Distillates Stocks Leave East Coast Exposed
The U.S. East Coast fuel market is heading into a major test in the coming
weeks after distillates inventories hit their lowest levels on record last
week, leaving the region particularly vulnerable and with little cushion ahead
to a major planned maintenance outage at Irving Oil's Saint John refinery.
The Energy Information Administration's Weekly Petroleum Status Report
released Wednesday (9/2) showed that PADD 1 distillates stockpiles fell 1.7
million bbl, or 8%, to 19.3 million bbl during the week ended August 28, the
lowest level on record since the agency began tracking weekly inventories in
1990.
Last week's drawdown leaves the region with a thin supply cushion just days
before Irving Oil plans a 75-day turnaround at its 320,000-bpd Saint John
refinery in New Brunswick, Canada. PADD 1 is especially vulnerable to
disruptions in outside supply because the region holds just 5.1% of U.S.
refining capacity.
According to EIA data, East Coast operable crude distillation capacity was
at 928,300 bpd as of January 1, compared with 18.2 million bpd nationwide. As a
result, the region depends heavily on refined-product movements from the Gulf
Coast, primarily through the Colonial Pipeline system, as well as tanker and
barge shipments and foreign imports.
This year, however, those replacement flows have weakened due to the global
supply shortage driven by the Middle East conflict. PADD 3-to-PADD 1 distillate
pipeline movements fell from 842,000 bpd in January to 615,000 bpd in June, EIA
data showed. Colonial Pipeline's Line 2 carries distillates from the Houston,
Texas, area to Greensboro, North Carolina, where barrels can continue north
through Line 3 toward Linden, New Jersey.
Supplies are expected to remain limited as U.S. Gulf Coast refiners have
opted to export distillates to cover the global diesel shortage. PADD 3
distillate exports increased from 1.09 million bpd in January to 1.48 million
bpd. Over the same period, PADD 3-to-PADD 1 pipeline flows dropped from 842,000
bpd to 639,000 bpd, leaving fewer Gulf Coast barrels to supply the East Coast
region.
Additionally, the economics for shipping ULSD from Houston to Linden have
weakened sharply. DTN market data showed that the NYH ULSD average premium over
Gulf Coast ULSD has gradually declined from 7.48cts gallon in May to 2.55cts in
August. Those spreads were below Colonial Pipeline's 7.98cts gallon
Houston-to-Linden tariff before product loss allowances, line-space costs and
other expenses.
The spread turned negative on several sessions in late August, including a
4.75cts gallon ULSD Gulf Coast premium over the same product traded in the New
York Harbor on August 21.
Fuel buyers do not have many options as the product is scarce even in the
imports market. According to federal data, the four-week average for PADD 1
distillate imports fell from 200,000 bpd early on the year to 88,000 bpd during
the four weeks ended August 21.
Supply concerns are especially pronounced in New England, where distillate
inventories have fallen to about 2.3 million bbl heading into the fall heating
season. The Saint John refinery, one of the Northeast's largest external fuel
suppliers, is scheduled to begin a 75-day turnaround September 8.
Based on the refinery's capacity and typical distillate yields, Saint John
could account for an estimated 3% to 6% of total PADD 1 distillate supply, with
its importance considerably greater in New England.
The latest EIA data also showed distillate inventories in the Lower
Atlantic, or PADD 1C, fell 17% on the week, indicating the draw was spread
across more than one East Coast market.
With limited refining capacity of its own, record-low inventories, fewer
Gulf Coast barrels moving north, weaker import flows and upcoming maintenance
at Saint John, PADD 1 is entering the fall increasingly dependent on an
improvement in replacement supply before winter heating demand accelerates.
EIA: PADD 5 Gasoline, Distillates Stocks Hit 3-Month Low
U.S. West Coast (PADD 5) gasoline and distillates inventories fell to their
lowest level in three months, while jet fuel stockpiles rose during the week
ended August 28, the U.S. Energy Information Administration (EIA) reported
Wednesday (9/2).
For a third straight week, motor gasoline stocks in the PADD 5 region
dropped by 400,000 bbl to 27.2 million bbl during the referenced week, the
EIA's Weekly Petroleum Status Report showed. This was the lowest level hit in
three months. Year-over-year, the same product inventory was below the 30.2
million bbl reported during the same week last year.
PADD 5 gasoline imports fell by 69,000 bpd to 22,000 bpd compared to the
prior week, and they were also below the 87,000 bpd recorded a year earlier.
Regional distillate fuel stockpiles fell by 700,000 bbl to 9.9 million bbl
from the prior week, the lowest in over three months, and were well below the
11.7 million bbl reported for the same week of a year earlier. Distillate
imports in the same region rose by 16,000 bpd to 42,000 bpd on the week, and
were sharply above the 7,000 bpd imported a year earlier.
Jet fuel stocks in PADD 5 rose by 300,000 bbl to 11.4 million bbl, for the
third consecutive week after hitting seven-week consecutive declines, and were
slightly higher than the previous year's level of 11.3 million bbl. Jet fuel
imports in PADD 5 rose to 66,000 bpd from 14,000 bpd on a weekly basis and were
above the 45,000 bpd reported year-over-year.
Crude oil inventories in PADD 5 rose by 2.4 million bbl to 47.7 million bbl
during the week profiled above the 45.6 million bbl reported for the same week
last year. Crude imports rebounded to 1.144 million bpd from 826,000 bpd last
week; however, they were below the 1.468 million bpd recorded a year earlier.
PADD 5 refinery utilization dropped to 92.8% from 93.7% the previous week,
EIA data showed.
Analysis: SPR Releases Set to Slow as Hurdles Mount
More than 97% of the 133.5 million bbl of crude awarded to companies from
the Strategic Petroleum Reserve (SPR), have been released, emphasizing how
quickly the emergency stockpile has been drawdown. The U.S. Energy Information
Administration reported on Wednesday (9/2) that another 1.3 million bbl were
released last week, leaving only a small portion available to the market.
Although the Trump administration's commitment to releasing a total of 172.2
million bbl, large scale drawdowns may be unlikely to continue for long, given
the lack of demand and growing logistical hurdles as volumes in storage are
approaching operational minimums.
This year's emergency reserves release came in form of loans, with companies
agreeing to return 1.2 to 1.24 bbl of crude oil for every barrel received. A
total of 133 million bbl was awarded in the first three months of bidding,
according to the EIA. The latest round in June, however, saw the allocation of
only 500,000 bbl of the 40 million bbl on offer, as softening crude oil
fundamentals, plentiful domestic supply and bearish price outlooks have made
these high interest loans less attractive.
The lower the fill level, the harder it becomes to drain the salt caverns of
their remainder crude. At 286.6 million bbl, volumes in the SPR have fallen
into a range that is forcing a slowdown in operations. The drawdown rate has
dropped from 1.19 million bpd in May and June to 576,000 bpd in July and
August, well below the estimated effective rate of 2.7 million bpd.
The current maximum drawdown rate has already been stymied by outages and
maintenance issues and represents just 61% of the designed capacity. Inadequate
maintenance has also left parts of the emergency reserve completely
inaccessible. Some 90 million bbl housed in the Big Hill storage facility in
Winnie, Texas, are effectively locked in following a construction outage,
meaning less than 200 million bbl of crude in the SPR is even in theory
accessible, according to U.S. Government Accountability Office data.
Caverns cannot be fully emptied, either. Releasing the last batch of around
38.7 million bbl would bring stocks below the 250 million bbl mark widely
regarded by experts as the minimum fill level needed to ensure safe operations.
Given these factors, crude oil emergency stockpiles, while still plentiful
on paper, in practice have not much of a cushion left to provide.
SPR releases have until late July feathered what would have been an even
steeper fall in commercial inventories amid the highest domestic crude demand
in seven years and record-high exports.
Receding international demand amid easing supply disruptions and global
crude oil demand destruction allowed for a counter-seasonal recovery in August,
with exports and inventory levels falling back in line with year-ago levels.
During this period, commercial crude oil inventories expanded by 17.47
million bbl, while SPR volumes declined by 18.3 million bbl. The prospect of
and end to large scale SPR releases, combined with softening demand both at
home and abroad, may turn out to be the saving grace for commercial inventories.
EIA: PADD 2 Distillates at 7-Wk Peak, Gasoline 5-Wk High
Midwest oil inventories rose across the board again last week, with
distillate stocks hitting 7-week peaks and gasoline balances five-week highs,
the Energy Information Administration (EIA) reported Wednesday (9/2).
Motor gasoline inventories in the PADD 2 region built by 100,000 bbl during
the week ended August 28 to stand at 43.4 million bbl, according to the EIA's
Weekly Petroleum Status Report. That was the highest for Midwest gasoline
stocks since the week ended July 24, when inventories stood at 44.33 million
bbl.
Year-on-year, regional gasoline stocks fell by 1.6 million bbl from the 45.0
million bbl recorded during the corresponding week of 2025.
Weekly imports of gasoline into the Midwest fell by 12,000 bpd on the week
to average 6,000 bpd during the current reporting period. This inbound volume
was down by 5,000 bpd from the year-ago level of 11,000 bpd recorded during the
same week last year.
PADD 2 distillate fuel oil inventories rose by 200,000 bbl on the week to
28.8 million bbl. That was the highest balance for Midwest distillates since
the week ended July 10, when stocks stood at 28.86 million.
The latest weekly build in distillates placed regional inventories of the
product at 600,000 bbl higher than the 28.2 million bbl logged during the
corresponding week last year.
Distillate imports into the Midwest averaged 5,000 bpd, up 1,000 bpd on the
week but down by 22,000 bpd from the year-ago volume of 27,000 bpd.
Jet fuel stocks rose by 100,000 bbl from the prior week to 8.2 million bbl,
standing 600,000 bbl above the previous year's level of 7.6 million bbl. Weekly
jet fuel imports into the region remained flat at zero bpd, matching both
week-ago and year-ago levels.
Crude oil inventories decreased by 700,000 bbl on the week to 100.5 million
bbl, which is 5.3 million bbl lower than last year's level of 105.8 million bbl.
PADD 2 crude imports increased by 421,000 bpd on the week to average
3,000,000 bpd, according to latest EIA data. This inbound crude oil volume was
161,000 bpd higher than the 2,839,000 bpd reported by the agency during the
corresponding week last year.
Refiner use of crude in the Midwest stood at 4.425 million bpd last week,
versus 4.356 million the week prior and 3.985 million a year ago. The regional
utilization rate rose to 103.5% versus the prior week's 101.8% and surpassed
the year-ago level of 93.8%.
EIA: PADD 1 Distillate Stocks at All-Time Low; Gasoline Up
U.S. East Coast distillate stocks hit record lows last week while gasoline,
jet fuel and crude oil inventories increased, the Energy Information
Administration (EIA) reported Wednesday.
Refinery utilization in the PADD 1 region was virtually unchanged during the
week ended August 28 versus the prior week, the EIA's Weekly Petroleum Status
Report showed.
Distillate inventories on the East Coast dropped by 1.7 million bbl to 19.3
million bbl during the profiled week, standing 9.4 million bbl below the 28.7
million bbl reported during the same week last year.
EIA historical data showed the inventory level of 19.3 million bbl for the
week ended August 28 to be the lowest ever for PADD 1 distillates since
regional record-keeping began in January 1990.
Distillate imports into the region dropped to 49,000 bpd from 133,000 bpd
the previous week, though remaining slightly above the 47,000 bpd brought in
during the comparable week of 2025.
Gasoline stocks in PADD 1 rose by 300,000 bbl to 52.6 million bbl during the
reference week, though they remained 2.9 million bbl below the 55.5 million bbl
recorded during the same week last year.
Gasoline imports into the region fell to 278,000 bpd from 433,000 bpd the
previous week and were below the 411,000 bpd reported during the comparable
week of 2025.
Jet fuel inventories increased by 200,000 bbl to 11.2 million bbl during the
reference week and were 800,000 bbl above the 10.4 million bbl reported during
the comparable week in 2025.
East Coast jet fuel imports averaged 13,000 bpd, matching the previous week
and up from zero bpd imported during the comparable week of 2025.
Crude oil inventories on the East Coast built by 100,000 bbl to 8.5 million
bbl during the week profiled and were 800,000 bbl above the 7.7 million bbl
reported during the same week last year. Crude imports into the region averaged
530,000 bpd, down from 653,000 bpd the previous week but above the 431,000 bpd
reported during the comparable week of 2025.
Refinery utilization on the East Coast edged down to 86.6% of operable
capacity from 86.7% the previous week, while crude oil inputs dropped by 9,000
bpd to 788,000 bpd.
EIA: PADD 3 Jet Fuel Stocks Fall to 3-Month Low
U.S. Gulf Coast (PADD 3) jet fuel inventories fell to a three-month low
during the week ended August 28, while gasoline stocks declined and distillate
fuel inventories increased as refinery utilization remained high, according to
the U.S. Energy Information Administration's Weekly Petroleum Status Report
released Wednesday (9/2).
Jet fuel inventories fell by 500,000 bbl to 14.3 million bbl during the
reference week, the lowest level since the week ended May 29, when stocks stood
at 14.3 million bbl. Inventories remained 1.4 million bbl above the 12.9
million bbl reported during the same week last year. The Gulf Coast reported no
jet fuel imports during the reporting week.
Motor gasoline inventories in the PADD 3 region fell by 1 million bbl to
76.2 million bbl during the reference week, extending the previous week's 2.3
million bbl decline. Inventories were 5.1 million bbl below the 81.3 million
bbl reported during the same week last year. Gasoline imports into the Gulf
Coast averaged 36,000 bpd, up from 7,000 bpd the previous week but below the
46,000 bpd reported during the comparable week of 2025.
Distillate fuel oil inventories, the feedstock for diesel, increased by 3.1
million bbl to 42.7 million bbl during the profiled week, rebounding from the
previous week's more than three-month low of 39.6 million bbl. Inventories
remained 1.3 million bbl below the 44 million bbl reported during the same week
last year. As a net exporter of distillate fuel, PADD 3 reported no distillate
imports during the reporting week.
Crude oil inventories in PADD 3 fell by 6.3 million bbl to 245.1 million bbl
during the reference week, extending the previous week's 2.2 million bbl
decline. Inventories remained 5.7 million bbl above the 239.4 million bbl
reported during the same week last year. Crude oil imports into the Gulf Coast
averaged 1.721 million bpd, down from 1.736 million bpd the previous week but
above the 1.591 million bpd reported during the comparable week of 2025.
Refinery utilization on the Gulf Coast increased to 97.7% of operable
capacity from 97% the previous week, while crude oil inputs into refineries
averaged 9.600 million bpd, up from 9.520 million bpd the week before, EIA data
showed.
Chevron To Expand Venezuelan Acreage, Eyes $7B Investment
Chevron announced Wednesday (9/2) landmark agreements with Venezuela,
including additional acreage in the Orinoco Belt, and plans to invest more than
$7 billion over the next five years.
The investments are expected to more than double production to approximately
600,000 bpd compared to 2026 levels.
"With total costs of less than $20 per barrel, Venezuela represents a
platform of differentiated, low-cost oil growth under Chevron's disciplined
cash management model," the company said.
Under the agreements, the Petroindependencia joint venture, in which
Chevron's subsidiary holds a 49% interest, has been granted rights to develop
the adjacent Carabobo 1 and Carabobo-2-South-A areas in the Orinoco Belt.
On April, Chevron increased its working interest in Petroindependencia to
49% and received rights to develop the Ayacucho 8 area adjacent to the
Petropiar joint venture. Collectively, Chevron's three joint ventures have
grown production by 15% year-to-date.
Chevron's joint ventures, Petroindependencia and Petropiar, operate
extra-heavy oil projects in the Orinoco Oil Belt, while Petroboscan operates in
Zulia State in Western Venezuela.
EIA: Ethanol Stocks Edge Lower on Week, Up 11% on Year
The Energy Information Administration reported on Wednesday (9/2) that
overall ethanol production in the United States averaged 1.11 million bpd in
the week ending August 28, down 2,000 bpd week-on-week and 35,000 bpd, or 3.3%
higher than in the same week last year. Four-week average output at 1.107
million bpd was 30,000 bpd above the same four weeks last year.
Midwest ethanol production averaged 1.053 million bpd, down 9,000 bpd
week-on-week and 32,000 bpd, or 3.1% higher than in the same week last year.
Four-week average output at 1.051 million bpd was 29,000 bpd above the same
four weeks last year.
Ethanol blending activity in the U.S. averaged 940,000 bpd, up 17,000 bpd
week-on-week and 25,000 bpd, or 2.7% higher than in the same week last year.
Four-week average blending demand at 926,000 bpd was 1,000 bpd above the same
four weeks last year.
Blender inputs at the East Coast were unchanged from last week, while inputs
in the Midwest were up 13,000 bpd, up 4,000 bpd on the Gulf Coast and down
2,000 bpd on the West Coast.
Domestic ethanol inventories ended the week at 25.035 million bbl, down 171,000
bbl week-on-week and 2.471 million bbl, or 11% higher than in the same week
last year.
East Coast PADD 1 inventories ended the week at 7.592 million bbl, up 340,000
bbl week-on-week and 794,000 bbl, or 11.7% higher than in the same week last
year.
Midwest PADD 2 inventories ended the week at 9.44 million bbl, down 605,000 bbl
week-on-week and 348,000 bbl, or 3.8% higher than in the same week last year.
Gulf Coast PADD 3 inventories ended the week at 5.249 million bbl, up 133,000
bbl week-on-week and 1.296 million bbl, or 32.8% higher than in the same week
last year.
West Coast PADD 5 inventories ended the week at 2.421 million bbl, down 43,000
bbl week-on-week and 44,000 bbl, or 1.9% higher than in the same week last year.
EIA: Propane/Propylene Stocks Record First Draw in 8 Wks
The Energy Information Administration reported on Wednesday (9/2) total
domestic propane/propylene stocks of 107.411 million bbl in the week ending
August 28, down 2.072 million bbl week-on-week and 11.283 million bbl, or 11.7%
higher than in the same week last year.
Data show propane/propylene exports last week averaged 2.153 million bpd, up
135,000 bpd week-on-week and 366,000 bpd, or 20.5%, higher than in the same
week last year.
Implied demand for propane/propylene in the United States averaged 1.125
million bpd, up 494,000 bpd week-on-week and 419,000 bpd, or 59.3% higher than
in the same week last year.
EIA reports domestic propane/propylene production averaged 2.916 million bpd,
down 5,000 bpd week-on-week and 49,000 bpd, or 1.7% higher than in the same
week last year.
East Coast PADD 1 inventories ended the week at 7.858 million bbl, down 283,000
bbl week-on-week and 828,000 bbl, or 9.5% lower than in the same week last year.
Midwest PADD 2 inventories ended the week at 26.176 million bbl, down 468,000
bbl week-on-week and 585,000 bbl, or 2.3% higher than in the same week last
year.
Gulf Coast PADD 3 inventories ended the week at 68.182 million bbl, down 1.426
million bbl week-on-week and 11.568 million bbl, or 20.4% higher than in the
same week last year.
Combined inventories in the Rockies and the West Coast, PADD 4 and 5, ended the
week at 5.195 million bbl, up 105,000 bbl week-on-week and 41,000 bbl, or 0.8%
lower than in the same week last year.
EIA: Gasoline Stocks Fall to Nearly 10-Month Low
U.S. gasoline inventories fell to their lowest level in nearly 10 months
during the week ended August 28, while commercial crude oil stocks declined and
distillate fuel and jet fuel inventories increased, according to Energy
Information Administration data released Wednesday (9/2).
Total motor gasoline inventories fell by 1.2 million bbl to 205.7 million
bbl during the reference week, the lowest since the week ended November 7,
2025, when stocks stood at 205.1 million bbl. Inventories were 12.9 million
bbl, or 5.9%, below the 218.5 million bbl reported during the same week last
year. Gasoline imports averaged 370,000 bpd compared with 565,000 bpd the
previous week and 582,000 bpd during the comparable week last year. Gasoline
exports averaged 934,000 bpd versus 890,000 bpd the previous week and 982,000
bpd during the comparable week last year.
Commercial crude oil inventories fell by 4.5 million bbl to 424.5 million
bbl during the profiled week and were 3.8 million bbl, or 0.9%, above the 420.7
million bbl reported during the same week last year. Crude oil imports averaged
6.770 million bpd, up by 612,000 bpd from the previous week. Over the last four
weeks, crude imports averaged 6.715 million bpd, up 1.8% from the comparable
period last year. Crude oil exports increased to 4.483 million bpd from 3.792
million bpd the previous week and were above the 3.884 million bpd reported
during the comparable week of 2025.
Distillate fuel inventories increased by 800,000 bbl to 104.2 million bbl
during the profiled week but remained 11.7 million bbl, or 10.1%, below the
115.9 million bbl reported during the same week last year. Distillate imports
averaged 113,000 bpd compared with 176,000 bpd the previous week and 96,000 bpd
during the comparable week last year. Distillate exports averaged 1.735 million
bpd versus 1.790 million bpd the previous week and 1.341 million bpd during the
comparable week last year.
Jet fuel inventories increased by 200,000 bbl to 45.9 million bbl and were
3.1 million bbl, or 7.2%, above the 42.8 million bbl reported during the same
week last year. Jet fuel imports averaged 81,000 bpd compared with 28,000 bpd
the previous week and 45,000 bpd during the comparable week last year. Jet fuel
exports averaged 331,000 bpd versus 359,000 bpd the previous week and 296,000
bpd during the comparable week last year.
Strategic Petroleum Reserve inventories fell by 3.1 million bbl to 286.6
million bbl during the reference week, extending the previous week's 3.7
million bbl decline. SPR inventories were 118.1 million bbl, or 29.2%, below
the 404.7 million bbl reported during the same week last year.
Refinery utilization increased to 98% of operable capacity from 97.4% the
previous week. Crude oil inputs into refineries averaged 17.496 million bpd, up
from 17.393 million bpd the previous week, EIA data showed.
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