You can see this week’s report below in its entirety…we saw a w+800K build in the Midwest and +1.4 in the Gulf. In the Midwest, we have built 1.9MM in the two reports released so far this month…last year April to May we build 3.8MM, so we’re right on pace with last year’s building rate and we will be very near last year’s inventory level by the end of this month, year to year, in my opinion. That said, last year’s pace and level is not what you want to view as your standard, as those inventory levels were insufficient and helped lead to the challenge we saw in the Midwest. The gears really began to grind last summer when the Midwest saw a 2.0MM build June to July and just 800K August to September.
In the Gulf, we are well below last year’s level and 100K below the five year average. Last year’s levels were very high when compared to the five year averages, however.
In all regions, October through March contract numbers have been creeping lower…the precipitous drops have abated and it would seem like we’re a bit range bound right now. As always, cost averaging is the strategy to employ. Now, here is the meat of the report:
Propane inventories saw another build this week, increasing by 2.5 million to 37.7 million in the week ending 5/9/14, as reported by the Energy Information Administration. The gap continues to shrink between this year’s inventory and 2013 inventory. Current inventory is now 4.1 million below 2013’s inventory level at this time and 2.7 million below the 5-year average of 40.4 million.
Inventory builds were seen in all regions this week. Midwest increased 800,000 to 12.5 million; Gulf was up 1.4 million to 20.8 million; East grew 200,000 to 3 million; and West was up 100,000 at 1.5 million.
Historical Averages: Mid-Con is flat from last year at 12.5 million and is down 2.3 million from the 5-year average of 14.8 million. Gulf coast inventory is 5.5 million below last year and just 100,000 below the 5-year average of 20.9 million. East Coast is up 800,000 from last year, and is 400,000 below the 5-year average of 3.4 million.
Propane imports dropped 17,000 bpd last week to 55,000 bpd, erasing last week’s gains. East Coast was down 5,000 to 16,000; Midwest was down 10,000 to 27,000; Gulf remains flat at zero and West was down 2,000 to 12,000. Propane exports were flat at 314,000 bpd.
Other Inventory Numbers:
Crude Down: -0.4 mm
Motor Gas Down: -0.8 mm
Distillates Down: -1.1 mm