US Propane Supply Report

HOUSTON (DTN) -- The Energy Information Administration Wednesday reported U.S. inventories of propane/propylene rose a more-than-expected 1.6 million barrel (bbl) in the week-ended Sept. 21 to 76.4 million bbl, with stocks up sharply in East Coast PADD 1 but more modest increases in other major regions of the country.

A DTN survey showed market participants expected domestic propane/propylene stocks would increase 750,000 bbl in the week.

U.S. propane/propylene supplies are down about 2.0 million bbl or 2.6% versus the same time in 2017 and 10% below the five-year average for this time of year.

EIA data showed Gulf Coast PADD 3 propane/propylene rose 300,000 bbl in the week-ended Sept. 21 to approximately 37.8 million bbl, which was 4.8 million bbl or 11.3% below the year-ago level.

EIA data shows U.S. propane/propylene exports at 994,000 barrels per day (bpd) in the week ended Sept. 21, up from 975,000 bpd in the week prior. Four-week average exports were at 846,000 bpd compared with 614,000 bpd in the same period last year.

East Coast PADD 1 propane/propylene inventories jumped 600,000 bbl in the week at 7.9 million bbl, up about 2.3 million bbl or 41.1% from the same time in 2017 and 200,000 bbl above the level two years prior.

Midwest PADD 2 propane/propylene stocks increased about 400,000 bbl during the week to 26.7 million bbl, which was up 200,000 bbl from the same time last year but 2.3% less than two years prior.

In PADDs IV and V, which include the Rocky Mountain and West Coast regions, propane/propylene supplies were at about 3.9 million bbl, up 200,000 bbl in the week and 200,000 bbl above the year-ago level.

U.S. propane/propylene imports were at 114,000 bpd in the week, down from 154,000 bpd in the week prior. Four-week average imports were at 123,000 bpd. Agency data showed implied demand for propane/propylene in the week-ended Sept. 21 at 867,000 bpd, which compared with 1.179 million bpd in the week prior and 1.161 million bpd reported for the same week last year.

EIA reported refiner and blender net production of propane/propylene in the week at 1.976 million bpd, down 40,000 bpd from the week prior but 257,000 bbl above the year-ago level.

Brian L. Milne can be rereached at brian.milne@dtn.com

(BAS)

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