Gulf Coast Spot NGLs Mostly DN Midday, Conway Mostly Up
HOUSTON (DTN) -- US spot NGLs moved mixed early Wednesday with prices mostly
lower at the Texas supply hubs and mostly higher at the Conway hub while New
York Mercantile Exchange crude futures edged up.
Near midday, NYMEX May West Texas Intermediate crude oil futures were up
5cts at $64.10 bbl and nearby RBOB futures were 1.32cts higher at $2.0449
At 10:30 AM ET, the Energy Information Administration reported U.S.
inventories of propane/propylene increased a more-than-expected 2.4 million bbl
in the week-ended April 12 to 56.7 million bbl, up 20.9 million bbl or 58.2%
from the same time in 2018 and about 22% above the five-year average for the
same time of year.
A DTN survey Tuesday showed market participants expected domestic
propane/propylene stocks would increase 1.65 million during the week profiled.
Gulf Coast PADD 3 propane/propylene inventories climbed 2.7 million bbl in
the week-ended April 12 to 43.2 million bbl as Midwest PADD 2 stocks rose
300,000 bbl to 9.4 million bbl, EIA data show.
Versus the same time in 2018, Gulf Coast PADD 3 propane/propylene supplies
are up 20.1 million bbl or 87.0% while Midwest PADD 2 stocks have risen 400,000
bbl or 4.4%.
East Coast PADD 1 propane/propylene inventories dropped 700,000 bbl in the
week at 2.7 million bbl, which was up about 200,000 bbl or 8.0% above the
U.S. propane/propylene exports were at 1.118 million bpd in the week ended
April 12, up from 1.064 million bpd in the week prior. Four-week average
exports were at 1.113 million bpd compared with 735,000 bpd in the same period
EIA data showed commercial crude oil supplies dropped 1.4 million bbl in the
week-ended April 12 at 455.2 million bbl, which is up 27.6 million bbl or 6.5%
from the same time in 2018. The American Petroleum Institute reported Tuesday
that domestic crude supplies fell 3.096 million bbl during the week.
Agency data showed total U.S. motor gasoline inventories at 228.0 million
bbl, down 1.2 million bbl from the week prior and 8.0 million bbl or 3.4% below
the year-ago level. The API reported total U.S. motor gasoline stocks dropped
3.561 million bbl during the week profiled.
Spot propane traded moderately on the Intercontinental Exchange early
Wednesday with midday deal volume at the LST, Enterprise and Conway supply hubs
at 70,000 bbl, 140,000 bbl, and 65,000 bbl, respectively.
At Mont Belvieu, LST spot propane and Enterprise spot propane both hit near
two-week lows in late morning trade Wednesday, with the former down 0.875cts at
62.5cts gallon while the latter slid 0.5cts at 61.0cts gallon.
Enterprise spot propane was valued near midday at 40.0% of nearby WTI crude
futures, a 44-month low.
Targa spot propane did not trade early Wednesday.
Conway spot propane traded late morning at a more than one-week low at
54.75cts gallon, down 0.75cts from the day prior.
EnVantage inc. natural gas liquids analyst Peter Fasullo said his firm's
shipping survey showed exports from Marcus Hook last week were much higher than
in previous weeks while liftings declined at all of the major terminals on the
Gulf Coast. "Propane exports at Marcus Hook last week were at about 330,000 bpd
as four VLGCs lifted---previously the high was at about 130,000 bpd. With
Mariner East 1 still down, dock space intended for ethane might have been used
to load propane," Fasullo said.
EIA data showed U.S. propane/propylene imports were at 121,000 bpd in the
week-ended April 12, down from 169,000 bpd in the week prior. Four-week average
imports were at 167,000 bpd versus 158,000 bpd in the same period last year.
Agency data showed implied demand for propane/propylene at 620,000 bpd,
which compared with 941,000 bpd in the week prior and 1.054 million bpd in the
same period last year. Four-week average implied demand was at 854,000 bpd
versus 1.309 million bpd in the same period last year.
EIA reported refiner and blender net production of propane/propylene at
1.956 million bpd in the week-ended April 12, down 47,000 bpd from the week
prior but up 134,000 bpd or 7.4% from the year-ago level.
In other NGLs spot markets, Mt. Belvieu non-LST normal butane traded late
morning Wednesday at a more than one-week low, down 0.75cts at 74.25cts gallon,
and Conway normal butane was done 0.5cts higher at 65.5cts gallon.
Non-LST isobutane edged down 0.25cts at 75.0cts gallon, a more than one-week
low, and Conway isobutane was seen flat at 72.0cts gallon.
Mt. Belvieu non-LST natural gasoline was done 0.375 lower at 130.875cts
gallon while Conway traded at a fresh more than 5-1/2 month high at 123.5cts
gallon, up 0.5cts from the day prior.
Mt. Belvieu e/p mix was assessed at 21.875cts gallon, up 0.875cts, and
Conway e/p mix was valued 0.75cts higher at 14.0cts gallon.
Gulf Coast purity ethane traded 0.625cts higher at 23.125cts gallon.
In related markets, NYMEX May natural gas futures were down 4.9cts in midday
trade at $2.523 MMBtu, a near 26-month low on the spot continuation chart.
Alton Wallace, 1.832.646.9229, Alton.Wallace@dtn.com, www.dtn.com.
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