The ICIS Weekly Atlantic Basin Feedstocks report covers Europe and the US. There are numerous price assessments, including crude, naphtha, gasoline, ethane, propane, butane, LPG, NGL, VGO, fuel oil and cracked fuel and these are gathered by our locally based reporters. Commentary gives news and analysis on price movements, refinery news, demand patterns and any other economic or political news impacting the market at the time. This reliable tool can be used to help you make business decisions.
Updated to Q2 2019
Europe
Feedstocks supply tightened during Q2 amid strike action at Shell’s Pernis refinery in April. This was followed by refinery throughput limitations at a number of complexes in eastern and central Europe amid contaminated supplies of crude oil arriving from the Druzhba pipeline due to high levels of organic chloride. In May, a refinery bankruptcy in Russia led to restricted vacuum gasoil production at the site that affected European availability.
Demand for gasoil and vacuum gasoil picked up as participants prepared for the peak-driving season in the northern hemisphere. Demand was tempered by macroeconomic conditions affecting key markets such as Germany and Italy where industrial output and trade fell, limiting gasoil consumption. Imports likely increased during the quarter following restrictions to domestic production due to supply constraints relating to strike action and the contamination of key crude supplies from the Druzhba pipeline.
US
US methyl tertiary butyl ether (MTBE) supply was steady during the second quarter, with no major production hiccups. Total domestic production was steady in May and June, but the closure of the Houston Ship Channel during April brought unexpected disruption to the free flow of trading activity.
Demand for US-produced MTBE, which is chiefly exported to international markets, continued to be robust as global gasoline consumption was strong. MTBE is added to gasoline to boost octane levels. Mexico was the top destination for the oxygenate, with Chile, Venezuela and Belgium receiving product as well. MTBE was phased out in the US in favour of corn-based ethanol.
US ethane and propane supply increased during the second quarter, as a pipeline carrying raw-mix natural gas liquids (NGL) commenced operations and two NGL fractionators started up in Mont Belvieu, Texas. Drilling for crude and liquids continues to be strong in key producing areas, such as the Permian Basin, leading to robust production of NGL.
Ethane consumption in the US Gulf Coast region was steady to higher on the commissioning of two ethane-consuming crackers in the region, but was not as strong as expected due to the delay of another cracker’s start-up. Propane demand as a heating and drying agent fell on warming weather, but international demand was heightened by strong export interest, as US propane prices are advantaged versus other regions.
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