Crude showed a paltry 1.3M/bbl build in today’s EIA’s, less than what the API’s showed yesterday. This is the kind of production reaction some folks were looking for as domestic rig counts have been dropping since late 4Q14 and now things appear to be making their way down to production. The fears of running out of storage in the United States, something I began to doubt two weeks ago, are looking less likely now.
Propane showed a build of 2.0M/bbls last week to get to 60M/bbls nationally. The Midwest built 900K/bbls and the Gulf 700K/bbls.
I’ll have a more complete report on propane inventories later today…but crude oil (as I send this at 9:54am central) is up $1.77 to $55.06. Some technical benchmarks may kick in soon and send crude higher, with propane prices with it. Propane prices are already a cent higher than where we began the morning.