EIA: PADD 2 Natural Gasoline Exports Fell 52% MoM in March
CANYON LAKE, Texas (DTN) -- Exports of natural gasoline from to Canada
plunged by 183,000 bpd or 52% in March to an average of 169,000 bpd, after
hitting a record high 352,000 bpd in February, according to the most recent
monthly data from the Energy Information Administration.
Despite the sharp decline, Midwest PADD 2 still accounted for more than 93%
of U.S. natural gasoline exports in March, down from 97% in February.
Falling demand for diluent in the Canadian oil patch in March was reflected
in sinking spot prices for natural gasoline stored at LST salt caverns at Mont
Belvieu, which can be moved north on the Explorer Pipeline to the Chicago area
and then to Alberta.
LST spot natural gasoline traded at a 6cts discount to Enterprise natural
gasoline on March 31 after beginning the month at a 3.5cts premium.
Since March 31 however, LST natural gasoline prices have increased sharply
in value relative to Enterprise natural gasoline, which has plunged in value
versus nearby New York Mercantile Exchange WTI oil futures. Since May 15, Mt.
Belvieu spot LST natural gasoline has strengthened versus nearby WTI futures
rising from 74.3% to 76.7% on June 1 while Enterprise spot natural gasoline
weakened in relation to the nearby WTI contract, dropping from 74.3% to 50.2%
in the period.
LST spot natural gasoline's premium to Enterprise natural gasoline rose
throughout April and May and reached a 3-1/3 year high 23cts gallon on June 1.
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