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Weekly Petroleum Report -- 1/17/2013

January 17, 2013
By: Davis Michaelsen, Pro Farmer Inputs Monitor Editor

Crude Oil --

The recent surge in U.S. crude oil production has been hampered by limited pipeline capacity. But the U.S. Energy Information Administration reports that additions to pipeline capacity are in the works saying, "Looking forward, it is likely pipeline flows from PADD 2 to PADD 3 will increase in the coming months. Early this year, Enterprise Products Partners LP and Enbridge Inc. announced that the Seaway Pipeline's capacity expansion project, which will increase pipeline capacity from Cushing to the Houston area by 250,000 bbl/d, was nearing completion.pipelinecrude

Another notable project expected to add Cushing-to-Gulf-Coast capacity is TransCanada's Gulf Coast Pipeline project, which began construction in August 2012 and is expected to be completed in mid-to-late 2013 with an initial capacity of 700,000 bbl/d. Additionally, the Seaway Pipeline is expected to be twinned, increasing its capacity to 850,000 bbl/d in early 2014."

 

 

Currently, February 13 Crude is throwing a fit -- breaking out of trendline resistance and finding a fresh top at 95.34 (9amCT).

Propane --
 

U.S. Propane stocks fell 1.6 million barrels to end at 64.0 million barrels last week, 10.7 million barrels (20 percent) higher than a year ago. Midwest regional inventories dropped by 1.1 million barrels, while East Coast inventories declined by 0.5 million barrels. Rocky Mountain/West Coast stocks dropped by 0.4 million barrels, and the Gulf Coast region gained by 0.5 million barrels.

Propylene non-fuel-use inventories represented 5.1 percent of total propane inventories.

Distillate --disstuss1 17

Distillate stocks rose over the report week adding 1.7 million barrels to storage -- still 15.6 million barrels below year-ago levels. A cooler revised forecast for much of the Eastern U.S. stressed out natural gas yesterday and threatens to do the same for distillate. Stocks on hand have joined the bottom end of the five-year average, but weather related draws threaten to take farm diesel off the downward trend.

 

 


 

 

 

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