Bullish Outlook for China Continues
January 20, 2023
The propane inventory update had total stocks down 1.968 million barrels putting total inventories at 76.619 million. Last year at this time total inventories were at 58.686 million.
Midwest inventories were down 390,000 barrels putting total Midwest stocks at 22.291 million and last year inventories were at 19.311 million barrels.
Gulf Coast inventories were down 1.530 million putting total Gulf Coast stocks at 43.721 million and last year they were at 27.290 million. All storage locations have seen dramatic increases to stocks and the market has grown comfortable it can make it through the winter with no supply issues. Despite that fact propane prices have been moving higher mostly in response to crude oil prices moving up strong over the last two weeks.
The DOE inventory report had crude oil stocks up 8.41 million barrels, gasoline stocks up 3.48 million and distillates down 1.9 million. Another week of big builds in crude oil and these numbers have to been seen as bearish, but the mark didn’t care and moved higher again yesterday.
The bullish narrative continues with the outlook for China currently in a very positive light for more demand. The February 5th deadline banning Russian refined fuel products, as well as the first week of no SPR releases has traders and the funds buying energy.
Crude stocks are now at 448.015 and last year 413.813. Gasoline supplies are now 230.259 and last year 246.621. Distillates are at 115.777 and last year 127.952.