The Energy Information Administration (EIA) reported U.S. propane inventories
down 2.954 million barrels for the week ending December 13, this was the second
large drop in as many weeks. The draw put inventories at 90.099 million barrels.
That is 3.631 million barrels, 3.9% below last year and 9.65% higher than the five
year average for week 50 of the year.
A survey ahead of the report showed an average expectation for a 2.5-million-barrel
draw. Over the last five years inventory had averaged a 2.055 million-barrel draw
during week 50. Ready-for-sale propane stocks were down 2.091 million barrels to
59.614 million barrels. That was 66.2% of the total propane/propylene inventory.
U.S. propane production was down 75,000 bpd to 2.667 million bpd. Propane
imports were up 53,000 bpd to 179,000 bpd. Combined supply was down 22,000
bpd. U.S. domestic propane demand was down 402,000 bpd to 1.281 million bpd
while propane exports increased 376,000 bpd to 1.987 million bpd. Combined
demand was down 26,000 bpd. Overall it was a 4,000 bpd positive impact on U.S.
propane supply resulting in an inventory draw of 422,000 bpd compared to a draw
of 426,000 bpd the previous week.
Belvieu was unchanged on the day while Conway post a gain of 3/4¢. Conway is tracking more with crude’s uptick while belvieu has stayed muted. The international markets use belvieu to trade so that market is more liquid than Conway which could be the reason for the lack of movement in belvieu.
