Propane down despite inventory draw
The EIA reported U.S. propane inventories declined 2.455 million
barrels for the week ending January 3. Industry analysts were
expecting a 2.78-million-barrel draw. Over the last five years inventory
has declined 1.967 million barrels during week 53/1 of the year.
Propane production was down 23,000 bpd to 2.670 million bpd.
Propane imports were down 12,000 bpd to 134,000 bpd. Combined
propane supply was down 35,000 bpd. Domestic propane demand was
up 607,000 bpd to 1.436 million bpd. Propane exports were down
370,000 bpd to 1.719 million bpd. Combined demand was up 237,000
bpd. In total it was a negative 272,000 bpd impact on U.S. propane
supply resulting in a 351,000 bpd draw on inventory compared to a
79,000 bpd draw the previous week.
The inventory draw was in line with expectation but larger than
average for the week reported. Inventories remain above last year and
the five-year average.
Crude turns lower
Crude started the day moving higher hitting $75.29, just 19¢ below the 200-day moving price average. A couple of things seemed to turn crude lower. First was a light draw on crude inventories but very large builds of better than 6 million barrels each for gasoline and distillate inventories.
Perhaps more impactful was strong dollar and a report that President-elect Trump is considering declaring a national economic emergency so he can provide legal grounds for universal tariffs. Ultimately WTI closed at $73.32 which put it below its rising 5-day moving price average. It was the first close below the 5-day since December 27.
