October stock levels for C5+ fell 22% from storage levels in the same period in 2007. While the decreased storage levels coincided with the beginning of the winter heating season, they are at least partially due to increased ethane rejection and the lack of NGL production resulting from producers’ attempts to reduce costs by selling the product in gas form, rather than liquid form.
Prior to last year, C5+ stock levels hadn’t been less than 1 million bbl in the month of October since 2004. This again coincides with NGL prices hitting lows in the fall of 2008 that had not been seen in the industry since 2004.
