US Propane Inventory Drops to Lowest Level in Eight Years
October 7, 2021
Propane inventories had a draw of 633,000 barrels putting total stocks at 72.288 million barrels. Total inventories are 29% less than last year. Inventories have not been this low at this time of year at any point in the last 8 years. There could still be some builds to inventories even though the traditional build season is now over. But it is unlikely that any meaningful builds could happen to eliminate traders’ concerns about where inventories currently stand.
The DOE inventory report called crude stocks up 2.35 million barrels putting total stocks at 420.89 million barrels. Gasoline stocks were up 3.26 million barrels putting total stocks at 225.07 million barrels. Distillate stocks were down 400,000 barrels putting the total stock at 129.33 million barrels.
The market is still a little softer as there is talk that we will again use the SPR to try and help to ease gasoline prices. Goldman Sachs says the release would only have a marginal impact on prices. I think history would also support this conclusion.
Also offering some selling pressure are reports that Russia is increasing natural gas sup[plies to Europe.
Most of the traders seem to think that all these things are temporary, and the market does need some relief as the rally has been straight up. The bulls have a fair cushion on how far the market can fall back and still be in an uptrend. The first thing the bears need it to take out a meaningful level of support.