Propane Inventories 11% Below Five-Year Average
June 17, 2024
The Baker Hughes Rig Count had oil rigs down 4 to a total of 488 oil rigs and last year there were 552 oil rigs in operation. As we have said before, despite the decline in rigs US crude oil production has been the highest it has ever been nearly 13.00 million bpd for over two years now.
Energy markets traded higher last week as the sentiment around demand improved. Markets are higher this morning, but China’s manufacturing sector did not show as much growth as the market expected and this may be a negative here in the near term. The University of Michigan’s Consumer Sentiment survey fell sharply from May 2024 to April 2024 when a sharp rise was expected. This also put selling pressure on prices on Friday.
The EIA reported the US crude oil refining capacity increased by 1.5% to 18.38 million bpd this year as a major new expansion in Texas increased capacity. The gain was the second consecutive year of increases due to expansion at existing operations.
Data from industry sources and Reuters calculations showed that Russia’s seaborne oil products exports in May increased to 9.595 million metric tons up 10.4% on the month, after seasonal and unplanned maintenance at refineries and a fuel export ban was lifted.
US crude oil inventories increased by 3.7 million barrels last week and now sit at 459.7 million barrels which puts inventories 4% below the five year average. Total gasoline inventories increased by 2.6 million barrels last week and are now just slightly below the five year average. Distillate inventories increased by 900,000 barrels last week and are now 7% below the five year average. Propane inventories increased by 1 million barrels last week and are 11% above the five year average.