MARKETWIRE ALERTS

MARKETWIRE ALERTS 

MarketWire Afternoon News for December 26th:

Updated at 5:00 PM ET 

HEADLINES:

— Pemex’s Deer Park Refinery Coker Unit Sees Major Flaring

— Baker Hughes: North America Rig Count Down 64 on Week

— CEC: California Diesel Stocks Slip 4,000 Bbl on Week

— CEC: California Gasoline Stocks Fall 124,000 Bbl on Week

— AAR: Petroleum Carloads See Weekly 3.9% Drop on Week

— Analysis: Record U.S. Propane Stocks Define LPG Markets in 2025

— BP Sells 65% of Castrol for $6B to Cut Debt

NEWS:

Pemex’s Deer Park Refinery Coker Unit Sees Major Flaring

Pemex reported an emission event at the coker unit of its 340,000 bpd,  Deer Park, Texas, refinery, according to a filing with the Texas Commission on Environmental Quality.

The incident began at 6:27 a.m. on December 24, when a wet gas compressor at the facility’s coker unit tripped due to a power fluctuation. The event lasted until 2:39 p.m. and released nearly 121,000 pounds of sulfur dioxide into the air—the largest pollutant by volume.

Additional emissions included 3,100 pounds of carbon monoxide, 1,750 pounds of hydrogen sulfide, and various volatile organic compounds totaling several thousand pounds, including butane, propane, and other hydrocarbons.

Several pollutants exceeded hourly permit limits during the incident, including sulfur dioxide, carbon monoxide, nitrogen oxides, and hydrogen sulfide.

Operators stabilized the unit and restarted the compressor to minimize emissions. The quantities were determined using engineering calculations, analyzers, and flow meters. The incident remains under investigation and is listed as open.

Baker Hughes: North America Rig Count Down 64 on Week

North American drilling activity experienced a net loss of 64 rigs this week, with all the drop occurring in Canada and adding to the prior week’s decline of 13, according to Baker Hughes’ weekly rig count report released on Friday (12/26).

Canada’s total rig count fell by 67 week-on-week to 118. The U.S. total rig count, meanwhile, rose by three to 545.

The combined change in Canadian and U.S. rig counts resulted in a net loss of 64 in North America, with the current week’s tally of 663 down from 727 the prior week. Year-on-year, North American rigs were down by 21 from the 684 noted for the same week of last year.

In North America, land-based drilling activity rose by two rigs to stand at 526 for the week. Offshore activity advanced by one rig to 16. Activity in inland waters was unchanged for a third straight week at three. The Gulf of Mexico rig count climbed by one to nine.

Year-on-year, U.S. rigs were lower by 44 from the prior count of 589 during the same week of last year.

U.S. oil-directed rigs rose by three to 409 for the week. Gas rigs were unchanged at 127. The count for miscellaneous U.S. rigs was also flat at 9.

In Canada, oil-directed rigs fell by 60 to 59. Gas rigs slid by seven to also stand at 59.

CEC: California Diesel Stocks Slip 4,000 Bbl on Week

California diesel inventories edged lower in the week ending December 19, as declines in Northern California outweighed gains in the south, according to the California Energy Commission’s Weekly Fuels Report released on Friday (12/26) .

Statewide diesel fuel stocks fell by 4,000 bbl to 2.737 million bbl, and were 13% lower than last year.

Northern California diesel inventories posted the larger decline of the week, with total stocks falling by 55,000 bbl to 1.521 million bbl, though that was still 5% higher than a year ago.

Northern CARB diesel stocks fell by 42,000 bbl to 1.106 million bbl, while Northern other diesel fuel inventories declined by 13,000 bbl to 415,000 bbl.

Southern California diesel inventories climbed by 51,000 bbl to 1.216 million bbl, but remained 28% below last year’s levels.

Southern CARB diesel stocks fell by 78,000 bbl to 501,000 bbl, while Southern other diesel fuel stocks rose by 129,000 bbl to 715,000 bbl.

Statewide diesel production increased by 227,000 bbl to 1.712 million bbl, up 26% from last year.

Southern California diesel production climbed by 76,000 bbl to 1.055 million bbl, up 22% annually.

Southern CARB diesel production fell by 110,000 bbl to 547,000 bbl, while Southern other diesel fuel production climbed by 186,000 bbl to 508,000 bbl.

Northern California diesel production rose by 151,000 bbl to 657,000 bbl, up 34% from last year.

Northern CARB diesel production climbed by 34,000 bbl to 185,000 bbl, while Northern other diesel fuel production increased by 117,000 bbl to 472,000 bbl.

CEC: California Gasoline Stocks Fall 124,000 Bbl on Week

California gasoline inventories declined in the week ending December 19, pressured by draws in both Northern and Southern California, according to the California Energy Commission’s Weekly Fuels Report released Friday (12/26).

Statewide gasoline stocks, including CARB reformulated, non-California, and blending components, fell by 124,000 bbl to 11.336 million bbl, though still 12% higher than last year.

Northern California gasoline inventories slipped by 22,000 bbl to 5.34 million bbl, but remained 17% above year-ago levels.

Northern CARB reformulated gasoline stocks fell by 112,000 bbl to 2.907 million bbl. Northern non-California gasoline stocks were unchanged at 282,000 bbl, while Northern blending components climbed by 90,000 bbl to 2.151 million bbl.

Southern California gasoline inventories declined by 101,000 bbl to 5.997 million bbl, though still 9% higher than last year.

Southern CARB reformulated gasoline stocks dropped by 135,000 bbl to 2.605 million bbl. Southern non-California gasoline rose by 18,000 bbl to 558,000 bbl, while Southern blending components increased by 16,000 bbl to 2.834 million bbl.

Statewide gasoline production fell by 480,000 bbl to 5.8 million bbl, down 3% from last year.

Southern California gasoline production declined by 468,000 bbl to 3.697 million bbl, down 7% annually.

Southern CARB reformulated gasoline production fell by 201,000 bbl to 3.265 million bbl, while Southern non-California gasoline production dropped by 267,000 bbl to 432,000 bbl.

Northern California gasoline production edged lower by 11,000 bbl to 2.104 million bbl, but remained 4% higher than last year.

Northern CARB reformulated gasoline production climbed by 34,000 bbl to 1.931 million bbl, while Northern non-California gasoline production fell by 45,000 bbl to 173,000 bbl.

AAR: Petroleum Carloads See Weekly 3.9% Drop on Week

The Association of American Railroads (AAR) data show petroleum and petroleum product carloads totaled 10,360 in the week ending December 20, down by 3.9% from the same week a year earlier.

Year to date, petroleum and petroleum products carloads totaled 528,840, 1.7% lower than the corresponding week of last year, an AAR report published on Wednesday (12/24) showed.

Total U.S. weekly rail traffic was 487,138 carloads and intermodal units for the week ending December 20, down by 7.0% compared with the same week last year, the same data showed.

Last week, total carloads were 206,674 carloads, down by 10.5% from same week of 2024. Intermodal volume was 280,464 containers and trailers in the week profiled; a 4.3% decline compared to last year.

For the first 51 weeks of 2025, U.S. railroads reported cumulative volume of 11,320,426 carloads, a 1.5% increase from the same period last year; and 13,851,979 intermodal units, up by 1.6% from previous year. Total combined U.S. traffic for the first 51 weeks of 2025 was 25,172,405 carloads and intermodal units, an increase of 1.5% compared to last year.

North American rail volume for the week ending December 20, on 9 reporting U.S., Canadian and Mexican railroads totaled 310,557 carloads, down by 8.7% compared with the same week last year, and 361,679 intermodal units, down by 3.9% from the volume recorded the previous year.

Analysis: Record U.S. Propane Stocks Define LPG Markets in 2025

The U.S. LPG market experienced a year defined by record stockpiles and depressed prices for propane as well as new capacity projects across the industry.

Propane inventories hit a historic high of 106.1 million bbl in October, according to the Energy Information Administration. While stocks begun their seasonal drawdown from there for the approaching winter, they remained about 17% above the five-year average by mid-December, providing a massive supply cushion likely to persist into early 2026 for residential heating needs.

Propane production itself rose nearly 6% year-on-year to 2.8 million bpd, fueled by resilient drilling in the Permian Basin. The region’s associated gas – a byproduct of oil extraction – contains a high concentration of propane and now accounts for nearly half of all U.S. associated gas production. Permian gas output reached an estimated 26.2 Bcf/d this year, up from 25.4 Bcf/d in 2024.

Average wholesale prices for propane at Mont Belvieu, the primary pricing hub for LPG, struggled to maintain momentum in 2025. Prices frequently hovered near 70cts gallon, trailing last year’s 78cts average as supply consistently outpaced total domestic and international consumption.

By December, robust inventories and record production pushed benchmarks lower, with spot prices dipping toward 64cts gallon by mid-month.

Domestic propane demand, where heating needs constitute roughly 54% of the market, continued a decade-long trend of stagnant growth to average 1 million bpd.

Efficiency gains from heating technology and electrification in rural markets restricted domestic heating demand for propane, with the slack only modestly offset by the fuel’s use as a petrochemical feedstock.

Propane’s contribution as a feedstock to resin was also limited as U.S. production of major plastic resins remained nearly flat on the year, rising just 0.8% through October to reach 85.1 billion lbs.

Exports Surge for Ethane, High Stocks for Butane

Ethane, the second-largest LPG product, saw output average 2.8 million bpd in 2025, remaining relatively flat as producers balanced record field potential against mid-year export disruptions.

Despite this, net exports surged 14% on the year as U.S. producers expanded waterborne capacity at Nederland and Neches River to meet growing demand from Asian petrochemical hubs.

Nearly half of U.S. ethane exports went to China, which remained its primary destination, even as new federal licensing requirements and shifting trade policies earlier in the year pressured margins for overseas ethylene crackers.

Production of butane, a key blending component in gasoline, held near record levels of 0.7 million bpd in 2025 following a 20% surge the prior year.

While butane supplies were largely absorbed by high refinery utilization rates – which averaged 95% during the U.S. summer driving season – inventories remained at multi-year highs, keeping downward pressure on wholesale prices through the fourth quarter.

LPG capacity expansions also kept the industry busy through the year. (See table below)

Looking ahead, the EIA forecasts a 16% growth in ethane exports in the coming year as the second phase of the Neches River terminal comes online. Adding 180,000 bpd of capacity, the expansion cements the U.S. standing as the dominant global provider of waterborne ethane petrochemical feedstock.

At home, the propane stock overhang from late 2025 is expected to keep benchmark prices under pressure. Furthermore, rising adoption of commercial electric vehicles – highlighted by Georgia’s market share doubling to 7.1% – poses a growing long-term threat to demand for NGLs in road-fuel blending.

Key U.S. LPG & Midstream Projects (2025)

BP Sells 65% of Castrol for $6B to Cut Debt

BP is divesting a 65% stake in lubricants maker Castrol to private equity firm Stonepeak for $6 billion to reduce its net debt, according to news releases on the deal issued Wednesday (12/24).

The oil major said it aims to cut borrowings to between $14 billion and $18 billion by 2027, down from the $26.1 billion reported for the third quarter.

Stonepeak said it will get a majority interest in a 126-year-old lubricants brand, with an enterprise value of $10.1 billion.

The Canada Pension Plan Investment Board will contribute up to $1.05 billion to the deal to secure an indirect minority stake in Castrol, which operates 20 blending plants and 100 warehouses across 150 countries.

The deal is expected to close by the end of 2026 and includes a mandatory tender offer for public shareholders of separately listed subsidiary Castrol India Limited