Market Pulse
U.S. petroleum inventories showed mixed movements last week, largely influenced by cold weather and strong distillate demand. Crude stocks fell by 3.2 million barrels, roughly in line with weather-related disruptions, bringing inventories to 420.3 million barrels—about 4% below the five-year average and exceeding analysts’ expectations for a 2 million barrel draw, according to the EIA. Gasoline inventories rose modestly by 700,000 barrels, though gains were limited by sharply lower refinery gasoline production, while diesel inventories declined significantly by 5.6 million barrels amid high demand, prompting refiners to maximize distillate yields despite lower crude runs. Propane inventories dropped 6.2 million barrels, nearly half due to cold-related production losses, yet remain 21.3 million barrels above year-ago levels. Overall product supplied, a proxy for demand, increased 0.9% year over year to 20.8 million barrels per day, even as distillate demand trailed last year, and crude prices traded modestly higher following the data release.
Fundamentals
EIA’s Weekly Petroleum Inventory in MM’s BBLS
| Commodity | US Inventory | Change | 3 Yr Ave | CURRENT MARKETS |
|---|---|---|---|---|
| Crude Oil | 420.6 | -3.2 | 424 | WTI Crude: 0.14 |
| Gasoline | 256.5 | 0.7 | 225 | Heating Oil: -0.0089 |
| Distallates | 127.3 | -5.6 | 118 | RBOB: 0.0177 |
| Commodity | US Inventory | Change | Midwest Invent | Change |
|---|---|---|---|---|
| Propane | 82.8 | -6.2 | 17.3 | -2.2 |
Propane
Alongside crude, propane hub prices moved higher with the broader energy complex, posting modest gains. Blizzard-like conditions across parts of the country have created logistical challenges amid rising demand, while pipelines remain allocated with increasingly extended loading times. These pressures have been compounded by widespread freeze-offs, sustained heating demand, and the announcement of operational issues at Energy Transfer’s Nederland facility, which is expected to halt exports for the first 10–12 days of February. This disruption weighed particularly on Mt. Belvieu prices.
Funny
Fun Fact
February 4th, 1789 – George Washington was unanimously elected as the first President of the United State by the US Electoral
College.
Disclaimer: The data, information and related graphics (collectively, “Information”) is for general information use only and is compiled from sources believed to be reliable. Dale Petroleum Company does not guarantee its accuracy or completeness, nor does DPC assume any liability for any inaccurate or incomplete information. The Information is not intended to be a research report nor an analysis of a company and it should not be relied upon for making investment decisions. The information is subject to change without notice, is for general information only and is not intended as any offer or solicitation with respect to the purchase or sale of any financial instrument or as personal investment advice.