-Crude oil is trading a new month beginning today (December) and has been off over $1.90 at times this morning. The low has been $96.23/bbl and it’s off after an API build announcement of over 3MM last night. Another round of EIA reports is due out in roughly a half hour, for propane, too.
-Propane is off a half cent to $1.50, depending on the region.
-We are seeing strong regional demand for propane and it it’s putting a strain on the pipelines and trucking availability in the Midwest. The ONEOK line is seeing severe outages and delays, which is beginning to bleed over to the Mapco pipeline and now to TEPPCO, as Todhunter is without product. Huntington has received product and is loading.
-Propane’s relation to crude oil is now at 50%, getting close to its historical range.
-As for the forthcoming EIA report on propane, I am expecting a good draw…Given the demand curve we are seeing in much of the nation, I’d be shocked if propane prices fell as much as crude is falling. We’ll see.
QUOTE FOR THE DAY: “Talent is God given. Be humble. Fame is man-given. Be grateful. Conceit is self-given. Be careful.” John Wooden
- Shale Overload to Spur U.S.-China Fuel Trade: Energy Markets (bloomberg.com)
- Shale overload to push exports to Asia to new highs (fuelfix.com)
- Crude oil extends losses in futures trade on overseas cues (news.in.msn.com)