Propane inventories are steadily climbing as summer approaches, increasing by 3.8 million for a current total of 77 million, as reported by the Energy Information Administration as of 5/29/15. Inventory is 31.2 million above 2014’s inventory level at this time and 24.5 million above the 5-year average of 52.5 million.
Regional inventories continue to build. Midwest up 1.1 million to 19.8 million; Gulf up 2.3 million to 50.2 million; East up 400,000 to 4.5 million; and West flat at 2.6 million.
Historical Averages: Midwest is 3.7 million above last year’s inventory level and is 2 million above the 5-year average of 17.8 million. Gulf Coast inventory is 25.6 million above last year and 21.2 million above the 5-year average of 29 million. East Coast is up 1.2 million from last year and is up 800,000 from the 5-year average of 3.7 million.
Propane imports were down 29,000 bpd to 63,000 bpd. East Coast down 1,000 to 25,000; Midwest down 26,000 to 32,000; Gulf was flat at zero bpd and West down 2,000 to 6,000. Propane exports were flat from last week at 449,000 bpd.
Other Inventory Numbers:
Crude Down: -1.4 mm to 1,169.8
Motor Gas Down: -0.3 mm to 220.3
Distillates Up: +3.8 mm to 132.6
The Midwest five-year average gap held firm this week for the first time in a while, remaining at 2 million over the five year average. That is where things were after last week’s report, which shows you a 1.1 million build in inventories, which we had this week, is around the norm for this time of year. The Gulf stocks are out of this world high while exports remain flat.
Markets have reacted to this news today and are softer than they were earlier this week, especially in the gulf. The crude draw once again was the opposite of the API report, which estimated a build in inventories. This includes a 1 million draw down in Cushing, OK inventories…so that worry of running out of storage space for crude oil is a distant memory.