Mont Belvieu Propane Prices Up Midday after EIA Data

    

   ORANGE BEACH, Ala. (DTN) -- U.S. spot NGLs prices moved mixed in midday 
trade Wednesday with propane higher following the midmorning release of Energy 
Information Administration data showing a smaller-than-expected increase in 
propane/propylene stocks in the week-ended July 12.

   At 10:30 AM ET, the EIA reported U.S. commercial crude oil supplies dropped 
3.1 million bbl in the week-ended July 12 to 455.9 million bbl, 

   which is up 44.8 million bbl or 10.9% from the corresponding week in 2018 
and about 4% above the five-year average for the same time of year. The 
American Petroleum Institute Tuesday reported domestic crude supplies fell 
1.410 million bbl during the week-ended July 12.

   The EIA reported U.S. inventories of propane/propylene increased about 
500,000 bbl in the week at 77.5 million bbl bbl as stocks dropped in Gulf Coast 
PADD 3 by more than 1 million bbl but rose in other major regions of the 
country. A DTN survey on Tuesday showed market participants anticipated 
propane/propylene inventories would increase 1.35 million bbl in the week 
profiled.

   At 77.5 million bbl on July 12, domestic propane/propylene stocks were up 
12.2 million bbl or 18.7% from the same time in 2018 and about 5% above the 
five-year average for the same time of year, EIA data shows.

   Gulf Coast PADD 3 propane/propylene inventories dropped about 1.2 million 
bbl during the week profiled at 46.7 million bbl while Midwest PADD 2 stocks 
climbed 1.1 million bbl to 22.6 million bbl. Versus the same time in 2018, Gulf 
Coast PADD 3 propane/propylene supplies are up 12 million bbl or 34.6% and 
Midwest PADD 2 stocks up 900,000 bbl or 4.1%.

   East Coast PADD 1 propane/propylene inventories increased about 200,000 bbl 
in the week at 5 million bbl, which is down approximately 800,000 bbl or 13.8% 
versus the year-ago level.

   EIA data shows U.S. propane/propylene exports in the week-ended July 12 at 
967,000 bpd, down from 1.265 million bpd in the week prior. Propane/propylene 
exports during the four weeks that ended July 12 were at 1.130 million bpd, 
which compared with 723,000 bpd in the same period in 2018. 

   U.S. propane/propylene imports were at 96,000 bpd during the week profiled, 
down from 106,000 bpd in the week prior. Four-week average imports were at 
105,000 bpd compared to 99,000 bpd in the same period last year.

   Propane/propylene inventories in PADDs IV and V, which include the Rocky 
Mountain and West Coast regions, were reported at 3 million bbl in the 
week-ended July 12, which was up 400,000 bbl from the week prior and 200,000 or 
6.7% above the year-ago level. 

   EIA data showed total U.S. motor gasoline inventories at 232.8 million bbl, 
up 3.6 million bbl from the week prior but down 3.1 million bbl or 1.3% below 
the year-ago level. API reported total U.S. motor gasoline stocks decreased 
476,000 bbl in the week profiled.

   Near midday, NYMEX August West Texas Intermediate crude oil futures were 
down 42cts at $57.20 bbl while nearby RBOB futures were 0.47cts lower at 
$1.8871 gallon.

   In midday trade at Mont Belvieu, LST spot propane was up 1.5cts at 51.25cts 
gallon, a near seven-week high, while Enterprise spot propane was up 1.25cts at 
47.25cts gallon, a more than five-week high.

   Enterprise spot propane was valued early afternoon Wednesday at 34.7% of 
nearby WTI crude futures, a more than five-week high. 

   At this time last year, Enterprise spot propane was valued at 53.6% of 
nearby WTI futures.

   Conway spot propane traded near midday at 37cts gallon, up 0.625cts as its 
discount to Enterprise spot propane widened to 10.25cts, a four-day high.

   EIA data showed implied demand for propane/propylene in the week-ended July 
12 at 1.298 million bpd, which compared with 1.026 million bpd in the week 
prior and 1.029 million bpd in the same week last year. Four-week average 
implied demand was at 1.017 million bpd versus 901,000 bpd in the same period 
last year.

   EIA reported refiner and blender net production of propane/propylene for the 
week at 2.247 million bpd, up 97,000 bpd from the week prior and 305,000 bpd or 
15.7% above the year-ago level.

   In other NGLs spot markets, Mt. Belvieu non-LST normal butane and Conway 
normal butane both traded 0.5cts higher near midday Wednesday, with the former 
done at 51.75cts gallon and the latter at 40.5cts gallon.

   Non-LST isobutane was seen late morning at 64cts gallon, down 2cts, while 
Conway isobutane was flat at 46cts gallon.

   Mt. Belvieu non-LST natural gasoline slid 2cts at 109.5cts gallon and Conway 
natural gasoline was done 0.625cts lower at 107.875cts gallon.

   Non-LST e/p mix was assessed at 16.125cts gallon, up 1.125cts, while Conway 
e/p mix was valued 0.25cts lower at 5.5cts gallon.

   Gulf Coast purity ethane advanced 1.25cts in early Wednesday trade at 
17.375cts gallon, a 3-1/2 week high.

   In related markets, NYMEX August natural gas futures were down 0.6cts in 
midday trade at $2.312 MMBtu.

   Alton Wallace, 1.832.646.9229, Alton.Wallace@dtn.com, www.dtn.com. 

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