Propane inventories were reported down 4.504 million barrels.
Markets reacted bullishly to the number but probably shouldn’t have.
Inventory remains very high. Analysts on average expected a 2.64
million-barrel draw on inventory and the five-year average for week 51
of the year had been a draw of 3.596 million barrels.
At 85.595 million barrels propane is 911,000 barrels, 1.1% higher than
last year and 5.32% above the five-year average for week 51 of the
year. MB ETR was up 1.5¢ and Conway 0.75¢.
U.S. propane production was up 10,000 bpd to 2.677 million bpd.
Propane imports were down 54,000 bpd to 125,000 bpd. Combined
supply was down 44,000 bpd. U.S. domestic propane demand was up
453,000 bpd to 1.734 million bpd while propane exports decreased
276,000 bpd to 1.711 million bpd. Combined demand was up 177,000
bpd. Overall, it was a 221,000 bpd negative impact on U.S. propane
supply resulting in an inventory draw of 643,000 bpd compared to a
draw of 422,000 bpd the previous week.
