The ratio of NGL prices to crude oil weakened to 0.42 on Friday (green oval, right graph), a level breached only twice this year. The decline was mostly due to falling butane and propane prices, off 8% and 5% respectfully since early May.

For the week of May 23, Baker Hughes reported that the Western Canadian gas-directed rig count fell four to 43 (blue line and text in left hand chart below), 13 less than one year ago and its lowest point this year.

Western Canada’s propane inventories at the end of April (red circle in left hand chart below) were posted at 2.6 MMbbl, with a seasonally average increase of 0.8 MMbbl versus March and stand 0.9 MMbbl (-27%) below the five-year average (blue line) according to data from the Canada Energy Regulat

U.S. crude oil imports increased by 248 Mb/d last week, according to our Crude Oil Billboard and data from the EIA’s Weekly Petroleum Status Report.

PADD 1 (East Coast) propane inventories experienced a notable drop of 441 Mbbl, bringing total stocks down to 3.8 MMbbl. This sharp weekly decline diverges significantly from typical seasonal trends.