Petroleum Report: Propane Roars Higher as Delivery Constraints Mount

December 18, 2013 10:53 AM
 

Crude Oil --

January 2014 WTI crude oil opened this morning at $97.30. Resistance lies at $98.68 and $103.34. A violation of those levels would make $105.00 bulls next target. Next support is at $92.06 and below that, $91.25. A violation of these levels would suggest downside potential to April 15's low at $85.61. crstuss

U.S. crude inventories fell 2.9 million barrels to 372.3 million barrels -- now 0.7 million barrels above year-ago.

January 2014 Brent crude oil futures opened today at $108.52 and moved $1.02 higher to end the day at $109.54. Next support lies at $108.25. A move below those levels would suggest downside potential to $106.60. A violation of $112.95 would suggest upside potential to $114.00.

The WTI/Brent crude spread widened 44 cents on the week to $11.22 at the open, with Brent on top.

Home Heat --

  • Residential heating oil a penny lower on the week to $3.95/gallon.
  • Wholesale heating 6 cents lower on the week at $3.07/gallon.
  • Residential propane up 9 cents to $2.71/gallon.
  • Wholesale propane up 11 cents to $1.63 1/2/gallon.

 

Fuels --

Gasoline slightly higher -- Diesel fuels slightly lower.

The U.S. average retail price of regular gasoline decreased three cents to $3.24 per gallon as of December 16, 2013, two cents lower than last year at this time. Prices decreased in all regions of the nation, with the largest decrease coming on the Gulf Coast, where the price was down six cents to $3.05 per gallon. The Midwest price dropped five cents to $3.08 per gallon, and the Rocky Mountain price was $3.06 per gallon, two cents less than last week. The East and West Coast prices both fell a penny, to $3.37 per gallon and $3.47 per gallon, respectively, according to EIA.Picture6

The national average diesel fuel price decreased one cent to $3.87 per gallon, seven cents lower than last year at this time. Prices increased less than one cent on the East Coast and in the Rocky Mountains, to $3.92 per gallon and $3.85 per gallon, respectively, while decreasing in the rest of the nation. The Midwest price declined two cents to $3.85 per gallon. The Gulf and West Coast prices were $3.77 per gallon and $3.98 per gallon, respectively, both down a penny, according to EIA.

Farm Diesel softened 1/2 cent on the week, currently at $3.42. This week's lowest farm diesel was reported again in the state of Wisconsin at $3.26/gallon with the high mark in North Dakota at $3.54.

Propane --

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U.S. propane stocks fell by 2.7 million barrels to end at 50.0 million barrels last week, 19.3 million barrels (27.8%) lower than a year ago. Gulf Coast regional inventories dropped by 1.2 million barrels, and Midwest inventories decreased by 1.0 million barrels. East Coast inventories decreased by 0.3 million barrels, and Rocky Mountain/West Coast inventories dropped by 0.2 million barrels. Propylene non-fuel-use inventories represented 6.5% of total propane inventories, according to EIA.

LP moved 4 cents higher in this week's Inputs Monitor Index to $1.81. The lowest priced LP in our index is in Ohio at $1.59 while the high mark is at $2.16 in Indiana.disstuss

We reported this morning on major propane pipeline in Minnesota that will be switched from propane transport to Minnesota to dilutant bound for Canadian tar sands operations. Read the full story here...

Distillate --

The national distillate supply fell 2.1 million barrels to 116.0 -- now 1 million barrels behind year-ago.

 


Graphs and indicated text provided by EIA.

 

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