Tightening Crude Production and Supplies Become Focus of Markets
September 8, 2023
The total US propane inventories were up only 512,000 barrels, well below the over 2-million-barrel build estimate. Total inventories are now at 95.977 million barrels, well over 74.118 million barrels last year at this time. Midwest inventories were up 844,000 barrels putting total stocks at 25.638 million well above the 22.079 million barrels last year at this time of year. Gulf Coast inventories were down 1.125 million barrels putting total Gulf Coast stocks at 56.188 million, well above the 40.579 million barrels last year at this time. The fundamentals of propane are still bearish as supplies are very ample. But propane prices continue to pace crude oil and crude was up this week and propane price are higher as well.
This week also saw exports up 147,000 bpd, demand up 350,000 bpd, and production up 124,000 bpd.
The DOE inventory report had crude oil stocks down 6.31 million barrels to a total of 416.637 and last year there were 427.191 million barrels which makes this year 10.554 million barrels lower than last year.
Gasoline stocks were down 2.67 million barrels putting total gasoline stocks at 214.746 million and last year there were 214.808 million 62,000 barrels behind last year.
Distillate stocks were up 680,000 barrels putting total stocks at 118.602 million and there were 111.801 million barrels last year which put the current supply 6.801 million barrels ahead of last year.
Tightening supplies and inventories that continue to decline is front and center for the market right now and those concerns are pushing prices higher.