Paraco Gas Acquires KingstonOil’s Propane Division
Thursday, February 12, 2015
Kingston Oil Supply Corp. (Kosco), a full-service retail propane gas and heating oil company based in Hudson Valley, N.Y., sold its propane division and formed a strategic alliance for its fueloil division with Paraco Gas Corp. (Rye Brook, N.Y.). The sale of Kosco’s propane division to Paraco Gas includes service to 9000 existing Kosco propane accounts that use approximately 3.4 million gallons of propane annually.
Midwest Propane Market Better Balanced Than Year-Ago Period
Thursday, February 12, 2015
Stating the obvious, the Energy Information Administration (EIA) noted Feb. 4 that higher invento­ries, milder weather, and falling crude oil and natural gas prices have resulted in a Midwest propane market that so far this winter has not experienced the challenges faced last winter.
Mid-Month to Mid-Month: Time to Take a Breather
Thursday, February 12, 2015
Prices appear to be taking a minute to regroup and determine where the path heads. As it was a month ago, it seems that uncertainty continues to be the keyword. At Mont Belvieu, posted prices are keeping well above the 50-cent/gal.
U.S. Propane Inventories Decline 2.3 MMbbl
Thursday, February 12, 2015
U.S. propane stocks fell by 2.3 MMbbl the week ended Feb. 6 to stand at 65 MMbbl, according to the Energy Information Administration (EIA) in its Feb. 11 “This Week in Petroleum” report. As of that reporting period, volumes were 37.1 MMbbl, or 132.8%, higher than a year ago. As a stark reminder of this year’s bounty versus last season’s penury, Midwest supplies alone, which last year stood at a bare-boned total just under 9 MMbbl, were up nearly 12 MMbbl, or 131.6%.
Conway Spots Edge Up, Belvieu Little Changed
Thursday, February 12, 2015
Spot propane at Mont Belvieu and Conway, Kan. Thursday, Feb. 12 tem­pered strong early-week gains, with trading at the Texas hub little changed from the Monday email Update and the Midwest rising another penny. Early in the week prices at Belvieu hardened by 2.5 to 2.875 cents, while by Thursday they were either 0.125 cents lower or unchanged. Conway strengthened 3.25 cents when the markets opened after the weekend, and as the week was ending prices had edged up another penny.
Falling Oil Prices Underline OPEC’s Diminishing Influence
Thursday, February 12, 2015
With oil prices having fallen more than 50% in less than six months, the OPEC group’s reluctance to cut production in order to stabilize prices reflects the threat being posed by production increases from non-OPEC countries, according to the research and consulting firm GlobalData (London). Matthew Jurecky, GlobalData’s head of oil and gas research and consulting, states that more than 70% of the 12.7-MMbbld incremental pro­duction between 2008 and 2013 came from non-OPEC countries, led by the U.S., Russia, and China.
COMMENTARY: Postings Up, Down
Thursday, February 12, 2015
Principal postings were both higher and lower Thursday, Feb. 12, showing mixed results on the Dixie Pipeline and on TEPPCO while Midwest prices universally gained and Mont Belvieu declined. Increases were in a range of a half cent to as much as 7 cents, and discounts were from a quarter cent to 2 cents compared to the Monday email Update.
Market Balances Reflected in Changing Futures Price Spreads
Thursday, February 12, 2015
As supply and demand balances loosened in the second half of 2014, global inventories increased and crude oil prices for near-term delivery declined substan­tially more than prices for delivery farther into the future, reports the Energy Information Administration (EIA). In January 2015, the price discount of near-term deliveries to longer-dated deliveries grew to the highest levels since 2009 for North Sea Brent futures and since 2011 for West Texas Intermediate (WTI) futures.
Gas Water Heater Shipments Increase 3.9% in November
Friday, February 6, 2015
U.S. shipments of residential gas storage water heaters for November 2014 increased 3.9% to 362,082 units, up from 348,542 units shipped in November 2013, reports the Air-Conditioning, Heating & Refrigeration Institute (AHRI).
Freightliner Showcases Expanded S2G Applications With First Box Truck
Friday, February 6, 2015
As sales of the propane autogas S2G truck continue to grow among its initial market of propane distributors, Freightliner Custom Chassis Corp. (Gaffney, S.C.) is demonstrating new applications for the truck with the sale of its first medium-duty dry van, also known as a box truck, for a specialty manufacturer in California.
Crude Outlook Report
Wednesday, February 4, 2015
EIA reported Jan. 26 that the sharp decline in oil prices over the last quarter of 2014, which continued in January, is already having a significant effect on drilling activity in the U.S., as shown by the 16% drop in the number of active onshore drilling rigs in the Lower 48 states between the weeks ending Oct. 31, 2014 and Jan. 23, 2015.
Mont Belvieu, Conway Posts Move Lower
Sunday, January 11, 2015
The spot markets picked up where they left off prior to the holidays and continued to move even lower Thursday, Jan. 8. Mont Belvieu was down another 1.75 to 2 cents, while Conway shed just a half cent compared to the Monday email Update. Those late-week losses added more bad news for the markets as early-week trading showed even steeper declines of 4.375 cents at Belvieu and 4.5 cents at Conway compared to the previous reporting period. Significantly, Texas propane has dropped well under 50 cents/gal. and the Midwest is now below 40 cents.
U.S. Propane Inventories Fall 1.6 MMbbl
Sunday, January 11, 2015
U.S. propane stocks fell by 1.6 MMbbl the week ended Jan. 2 to stand at 75.7 MMbbl, according to the Energy Information Administration's (EIA) latest "This Week in Petroleum" report. The draw left volumes 33.2 MMbbl, or 78.3%, higher than a year ago. The Gulf Coast gave up 1.1 MMbbl and the Midwest 0.4 MMbbl. Rocky Mountain/West Coast regional inventories declined by 0.1 MMbbl, while East Coast supplies gained 0.1 MMbbl. Propylene non-fuel-use stocks represented 4.8% of total propane inventories, inching up from 4.6% the previous week.
Heightened Inspection Regime Explored by Railroad Commission
Sunday, January 11, 2015
Railroad Commission of Texas (RRC) chairwoman Christi Craddick has directed the commission's executive director to explore the potential need for further emphasis on inspections in highly populated, urban areas throughout the state. Craddick noted that RRC has heard concerns from residents of urban areas where drilling is occurring.
November Petroleum Demand Reaches 7-Year High
Sunday, January 11, 2015
Total U.S. petroleum deliveries, a measure of demand, rose in November by 1.9% from November 2013 to average 19.9 MMbbld, the highest level for the month in seven years, reports the American Petroleum Institute (API). ìIt has been several years since weíve seen this level of demand in November,î said API chief economist John Felmy. ìThe economy overall appeared to be in good shape, and production of crude, natural gas, and refined products all remained quite strong.î
New Routes Adopted for Northeast Gas Expansion
Wednesday, January 7, 2015
Tennessee Gas Pipeline Co. (TGP), a subsidiary of Kinder Morgan Inc. (Houston), is adopting two alternative routes for its proposed Northeast Energy Direct project to minimize environmental impact and allow for the expan¬sion of natural gas service in New Hampshire. Following an evaluation of feasible route alternatives from Wright, N.Y. to Dracut, Mass., the company has submitted an amended filing with the Federal Energy Regulatory Com¬mission.
Mont Belvieu, Midwest Spots Little Changed
Wednesday, January 7, 2015
While overall quiet prevailed in the markets late in the week, spot propane at Mont Belvieu and Conway, Kan. was only fractionally higher and lower Thursday, Dec. 18, compared to the Monday email Update. The Texas trading hub showed minimal gains of just 0.125 to 0.625 cents mid-morning, while the Midwest had slipped 0.625 cents. The late-week moves followed some gains in both markets Monday, when Belvieu stepped up 1.125 cents and Conway jumped 2.5 cents from the previous reporting period. Market watchers note there is currently overhang for propane supply.
COMMENTARY Most Postings Dip
Wednesday, January 7, 2015
Most principal postings declined Thursday, Dec. 18, backing off a minimum of an odd 0.35 cents but as much as 3.75 cents compared to the Monday email Update. There was a scattering of increases in the Midwest, on TEPPCO, and at Mont Belvieu. The additions ranged from a quarter cent to 1.32 cents. Two sellers held firm in the Midwest.
Canadian Inventories Inch Higher, Dip in East
Wednesday, January 7, 2015
Canadian underground inventories rose just 0.8% in November for a monthly gain of 15.8 Mcm, according to the National Energy Board (NEB). As of Dec. 1 they stood at 1921.7 Mcm, the equivalent of 12.1 MMbbl. The slight build followed stocks rising 0.5% in October. Compared to a year ago, however, November volumes were a marked 92.9% higher, or by 925.3 Mcm.