South Central FS, Inc.
Energy Market Update April 12, 2017
NYMEX Prices
May Crude Oil
May Gasoline
May Heating Oil
May Natural Gas
Close
Wk. Change
$53.11
$1.7417
$1.6520
$3.1790
+$1.96
+$0.0264
+$0.0485
-$0.081
Market Comments: Despite draws on DOE inventories, the Energy Futures markets sold
off into the close today. Crude oil and products have been mostly higher since late March and
was getting well into over-bought territory. Refinery run increases, that are projecting more
product builds, are putting some downward pressure on the futures. Propane draws have kept
prices firm.
Crude
DOE
Gasoline
Distillate Fuel
Change
Total
3Yr
Avg.
5 Yr.
Avg.
Change
Total
3Yr
Avg.
5 Yr.
Avg.
Change
Total
3Yr
Avg.
5 Yr.
Avg.
-2.166
533.4
465
430
-2.973
236.1
230
226
-2.153
150.2
134
131
EST.
-3.000 / +3.000
-3.000 / +1.000
0.000/ -2.000
Propane
Total 40.4 -1.2
Midwest 11.1 -0.1
Gulf 25.1 -1.3
API’s
Crude -1.300 Cushing
+0.800
Gasoline -3.700
Distillates -1.600
Retail gasoline
prices are at
the lower end
of the ten year
range, slightly
higher than
last year for
the Easter
Weekend
travel.
“A picture worth a thousand words”
shows Iran’s floating storage has been
used up sine October of 2016.
The market has been more
concerned about propane
inventories which, over the last five
weeks, have slipped under the fiveyear average. That has been
supportive of price, as well as
getting help from the crude price. It
has been a few years (2014) since
we have seen stocks at these levels,
but propane export demand in
2014 was only ½ to 1/3 of what it is
presently.
Since early fall U.S. propane
stocks have been trending lower
despite well above normal
temperatures this winter
throughout much of the U.S.
The international market
continues to have a large appetite
for U.S. propane, which is
drawing down our domestic
stocks. The latest DOE report
pegged U.S. stocks at 41.6 million
barrels, which was a 1.2million
barrel draw from the previous
week.
The soybean market started
its downward decline in late
February and has not offered
any relief. The recent bearish
tone can be contributed to
speculation the USDA will
show U.S. farmers planting to
increase their soybeans
plantings this year to record
levels in its planting intentions
report, even as South American
harvests produce large amounts
of the oilseed. While global
demand is strong, the extra
supply could continue to test
price.