Propane Exports Come Into Focus
July 15, 2021
The DOE inventory report said that crude oil stocks were down 7.9 million barrels putting total stocks at 437.58 and last year there were 531.688 million barrels a 94.108 barrel difference. Cushing, Ok crude oil stocks were down 1.589 million barrels putting total stocks at 38.058 million barrels and last year there were 48.737 million a 10.679 million difference. Gasoline stocks were up 1.038 million barrels putting total stocks at 236.535 million barrels and last year there were 248.535 million a 12.0 million barrel difference. Distillate stocks were up 3.657 million barrels putting total stocks at 142.349 million barrels and last year there were 176.809 million barrels a 34.460 million barrels difference.
Propane stocks showed a build of 1.592 million barrels. This build put total stocks at 59.563 million barrels compared to last year at this time when total stocks were at 80.348 million barrels a difference of 20.785 million barrels. Midwest stock was up 719,000 barrels putting total Midwest stocks at 17.459 million barrels and last year at this time they were 20.088 million barrels a 2.629 million barrel difference. Gulf Coast stocks were up 264,000 barrels putting total Gulf Coast stocks at 32.134 million and last year there were 48.179 million a 16.045 million barrel difference.
The build on propane was near expectations but the builds have not been enough to push back concerns about tighter supplies as we move toward the winter season. Propane stock levels have been estimated to be at the lowest level for this time of year in a long while, nearly a decade. Now the market did see a two-week period not that long ago where nearly 10 million barrels were added to the supply pool but the market needs about a month of those types of builds.
The propane industry has been talking about increasing exports for several years now and that reality has finally impacted how markets get supplied. The focus is now on exports and that leaves our US domestic market behind in stock builds and behind on building inventory for winter usage. The message and reminder for all of us are to get our tanks filled up and work to keep them full as we approach the winter.