US Petroleum Exports Hit Record High
October 14, 2022
The weekly propane inventory update had propane stocks up 1.092 million barrels putting total stocks at 85.483 million barrels. Last year at this time total stocks were 71.700 million barrels. Midwest stocks were up 399,000 barrels putting total Midwest stocks at 24.864 million and last year there were 24.806 million. Gulf Coast stocks were also up 399,000 barrels putting total Gulf Coast stocks at 47.127 million barrels and last year there were 33.684 million barrels. Mild weather and limited crop drying demand has weighed on propane prices and the market is just waiting for demand that will show up at some point.
The DOE weekly inventory update had crude stock up a big 9.88 million barrels putting total US crude oil stocks at 439.082 million barrels and last year at this time there were 426.975 million barrels and 12.107 million barrel surplus. Gasoline stocks were up 2.02 million barrels putting total gasoline stocks at 209.482 million and last year there were 223.107 and 13.625 million barrel deficit. Distillate stocks were down 4.85 million barrels putting total stocks at 106.063 million barrels and last year at this time they were 129.307 million a 23.244 million barrel deficit. Distillate stocks are low and currently are well below the 10 year minimum for this time of year. This continues to be a concern, but the market currently seems focused on other items beside the fundamentals. The recession fears could certainly impact demand and there are economists that that say a recession and demand destruction will be necessary to get the energy markets back into balance.
The volatility this week has been crazy with ULSD futures having several days with a range over 20 cents per gallon. Those extreme move to me signal no clear trend in the market due to ton of uncertainty.
The EIA reported that US exports of petroleum product increased last week to the highest level on record at 7.1 million bpd. It reported that US SPR stocks fell to 408.7 million barrels, the lowest level since June 1984.
Saudi Arabia rejected as “not based on facts” criticism of an OPEC+ decision last week to cut it oil production target despite US objections and said that the US’ request to delay the cut by a month would have had negative economic consequences.