The EIA reported a 400,000/bbl draw on propane inventories, which followed last week’s 600,000/bbl build. Today’s report was for the week ending 4/6/2018.
National inventory levels are back down to 35.8M/bbls, where they were at 40.4M/bbls one year ago, on their way to finishing April 2017 at 39.7. Inventories drew 1.9M/bbls last April, just the second propane stock draw in April in recorded history, dating back to 1985.
Propane exports were at 593,000/bpd, up slightly from last week 575,000/bpd number. The fact that we drew inventories in this first week of April with export demand ‘that low’ is a testament to the cold weather that will just not go away.
Through the first 10 days of April, much of the United States is experiencing their third coldest April on record:
This year still in 3rd nationally through day 10 April pic.twitter.com/JJ7nAlKtrs
— Joe Bastardi (@BigJoeBastardi) April 11, 2018
The first week of April 2018 was brutal in the upper-Midwest. Average temperatures were 20°-30°F below normal. Overall, the Lower 48 was 4.3°F below normal. February type cold. pic.twitter.com/AeByrsWgLA
— Ryan Maue | weather.us (@RyanMaue) April 9, 2018
This time of year, when you have these types of cold air masses, it’s just a matter of time before some severe battles will set up on the American Plains:
Details coming to https://t.co/tP2YJU3lDm shortly for the central Plains regarding strong late week storm….this will bring everything from severe storms to a major blizzard. #IAwx #NEwx #KSwx #MOwx #MNwx #SDwx pic.twitter.com/QtfpnLvkQn
— Nathan Kitchens (@NateWx) April 11, 2018
Looks like I need to throw a bug bomb down into the storm cellar tonight, here in Oklahoma!
This cold weather is also delaying planting in some areas, as soil temperatures are struggling to reach the requisite 50 degrees:
4" Soil Temps 4/11/18: pic.twitter.com/4SmlQJGC4V
— Darin D. Fessler (@DDFalpha) April 11, 2018
While the cold in March and April does not offset the warmth and loss of HDD’s in February, it certainly helps ease some of that pain.
Speaking of pain…there are some interesting goings on in the world of crude oil, and the Saudi’s are keen on pushing the price of crude oil higher than where it is now, as I have been writing about for some time.
I will write more on that in a post tomorrow. Look for it by late morning.