3-2-1 Crack Spread

U.S. oil and gas rig count gained one rig to 563 for the week ending June 5 according to Baker Hughes data, with little movement across most basins, as a two-rig gain in Permian offset a one-rig decline in Anadarko and all other basins were unchanged.

As discussed in the Crude Voyager Report for the week ended May 29, exports out of the U.S. Gulf Coast (USGC) averaged 5.4 MMb/d, with strength seen across a number of terminals. In the Houston region, the Seaway Freeport Terminal recorded export activity for the seventh consecutive week. While only one Aframax cargo was seen, the terminal's seven-week streak represents its longest period of uninterrupted export activity since 2023, signaling a notable increase in utilization compared with the sporadic loadings observed in recent years.

After falling to its lowest monthly average since October 2023 in April, the U.S. propane-to-WTI crude ratio is showing signs of recovery. The ratio started June higher than May's average, as propane regained some ground relative to crude oil. While it's too early to call a sustained turnaround, the early June rebound bears watching.

Alberta crude oil and condensate production for April was little changed from March, declining by only 22 Mb/d to average 4.492 MMb/d, and was up 162 Mb/d year-over-year, according to monthly data released by the Alberta Energy Regulator on May 29.

U.S. oil and gas rig count gained four rigs to 562 for the week ending May 29 according to Baker Hughes data, as a five-rig gain in Permian and a one-rig gain in All Other outweighed declines in Anadarko (-1) and Gulf of Mexico (-1); all other basins were unchanged.