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
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
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
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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