A Big Decline in Propane Stocks
January 25, 2024
The DOE inventory report had crude oil inventories down 9.23 million barrels putting total stocks at 420.678 million and last year there were 448.548 million barrels.
Gasoline inventories were up 4.91 million barrels putting total stocks at 252.977 and last year there were 232.022.
Distillates stocks were down 1.42 million barrels, putting total stocks at 133.336 and last year there were 115.207. Inventories have made some big gains in the last few weeks and eased some of the fundamental concerns of the market. But we are seasonally in the window for prices to begin their trend higher as demand picks up.
Propane inventories were down a big 8.399 million barrels, putting total stocks at 67.912 million barrels and total stocks now stand at 7.7 million barrels less than last year at this time. The ten-year average for this time of year is 65.36 million barrels so we are above that ten-year average.
The big decline in propane stocks was helped by production being reported at just 2.2 million barrels, a decline of 360,000 bpd week over week. Demand was also up as well as exports being higher in the week, all helping to create that 8-million-barrel draw to stocks.
Yesterday there were report of a drone strike at the Tuapse refinery in Russia. Indications were that some of the refining unit was damaged, which could reduce their production capacity. This certainly added support to prices.
Diesel demand was up last week by 140,000 bpd, helped by the cold weather, and gasoline demand was down by 390,000 bpd.