Propane continues to post counter-seasonal inventory builds, this week adding 1.5M/bbls to growing stockpiles.
We are now at 7.3M/bbls more propane for the same time frame year over year…this past week saw 1.9M/bbls added to Gulf Coast stockpiles, with Conway drawing 100,000/bbls. Conway inventory levels are higher than they were one year ago and just below the two-year average. There are no Conway inventory concerns in the market at this time. The Gulf has nearly 6M more barrels of propane than this time last year.
Crude oil built 5.8M/bbls, the seventh straight week of inventory builds. While that is not surprising, given that this is refinery maintenance season, WTI is trading south of $62/bbl where it closed at $76.41 on October 3rd.
I have been telling my subscribers for the past two weeks that I expected Russia and Saudi Arabia to remain quiet on the production cut talk until after midterm elections…and right on cue, this morning’s headlines were filled with some jawboning from OPEC members. An unsourced OPEC delegate is saying that Russia and Saudi Arabia are responsible for this 18%+ drop in crude prices and that they need to cut production by 1M/bpd immediately. There is an OPEC+ joint ministers meeting this weekend…I expect OPEC’s best attempt to jawbone crude oil prices higher over the next several weeks in advance of their official biannual meeting in Vienna the first week of December.
On the weather front, things are looking good for most of you the next two weeks:
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