• 5 minutes Covid-19 logarithmic growth
  • 8 minutes Why Trump Is Right to Re-Open the Economy
  • 12 minutes Charts of COVID-19 Fatality Rate by Age and Sex
  • 14 minutes China Takes Axe To Alternative Energy Funding, Slashing Subsidies For Solar And Wind
  • 1 min Which producers will shut in first?
  • 3 hours How to Create a Pandemic
  • 5 hours KSA taking Missiles from ?
  • 5 hours There are 4 major mfg of hydroxychloroquine in the world. China, Germany, India and Israel. Germany and India are hoarding production and blocked exports to the United States. China not shipping any , don't know their policy.
  • 5 hours A New Solar-Panel Plant Could Have Capacity to Meet Half of Global Demand
  • 3 hours TRUMP pushing Hydroxychloroquine + Zpak therapy forward despite FDA conservative approach. As he reasons, "What have we got to lose ?"
  • 4 hours Trump eyes massive expulsion of suspected Chinese spies
  • 20 mins WE have a suicidal player in the energy industry
  • 43 mins Eight Billion Dollars Wasted on Nuclear Storage Plant
  • 6 hours Breaking News - Strategic Strikes on Chinese Troll Farms
  • 19 hours Today 127 new cases in US, 99 in China, 778 in Italy
  • 20 hours America’s Corona Tsar, Andrew Fauci, Concedes Covid-19 May Be Just a Bad Flu With a Fatality Rate of 0.1%
Alt Text

What The Market Is Overlooking In The Occidental Deal

Occidental Petroleum has caught a…

Alt Text

The Worst Oil Trades Ever Made

Wall Street is full of…

Dave Forest

Dave Forest

Dave is Managing Geologist of the Pierce Points Daily E-Letter.

More Info

Premium Content

This Petroleum Indicator Hits a 20-Year Low

There are some massive changes afoot in U.S. petroleum markets.

Including some unusual trends many investors have never heard of.

In commodities like propane, for example. With the U.S. Energy Administration Information (EIA) reporting this month that propane inventories in the American Midcontinent have hit an all-time low.

Stocks of this natural gas liquid in the central states have been plunging of late. With inventories for the second week of January coming in at just 11.5 million barrels.

That's the lowest amount of propane in storage recorded here since the EIA started tracking this data, in 1993.

These record-setting low levels come after propane stocks here have declined 43.5% over the past year. With strong demand for drying of corn in the region drawing propane supplies into the local market.

The timing of this jump in local consumption is threatening to become a "perfect storm" for propane prices. Because it comes at exactly the same time as propane exports out of the U.S. are also surging.

As the chart below from EIA shows, propane exports from the U.S. Gulf Coast took a quantum leap over the last few weeks. Rising nearly 30%, to a current 370,000 barrels per day.

Weekly US Exports of Propane

That's a big increase in propane leaving the country. At exactly the same time as domestic demand in the Midcontinent is ramping up.

The result has been propane prices seeing notable upward pressure. With rates in some parts of the country having jumped more than 15% over just a couple of days lately.

That trend will continue, as midstream operators increasingly look to send natural gas liquids to high-value markets overseas, in Europe and Asia. To the benefit of those companies doing the selling--and producers in areas that are positioned to meet this growing demand.

Here's to unusual opportunities,

By Dave Forest


Download The Free Oilprice App Today

Back to homepage






Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News