Copyright DTN.
All rights reserved. Disclaimer.
US Spot Propane Advances on Small Stock Build Last Week
5/28 4:59 PM
US Spot Propane Advances on Small Stock Build Last Week CANYON LAKE, Texas (DTN) -- Spot propane prices moved higher at the major U.S. supply hubs Thursday following the midmorning release of Energy Information data for the week ending May 22 showing propane/propylene inventories increased a less-than-expected 1.5 million bbl. A DTN survey Wednesday showed market participants expected a 2 million bbl build in the week. EnVantage Inc. natural gas liquids analyst Peter Fasullo said U.S. propane stocks are increasing at below the five-year average rate as producers cut output. Field production of propane has dropped about 120,000 bpd from a record high average of 1.73 million bpd in January while propane output at U.S. refineries is down about 70,000 bpd from the pre-virus level, Fasullo said. With U.S. propane exports at below year ago levels, supply reductions are for now keeping the market about balanced, Fasullo said. The EIA estimated U.S. propane and propylene exports at 1.122 bpd in the week-ended May 22, up from 837,000 bpd in the week prior and a nine-month low 832,000 bpd two weeks prior. U.S. propane/propylene exports in the four weeks ended May 22 averaged 949,000 bpd compared with 1.294 million bpd in the same period in 2019. Conway spot propane rallied 1.75cts Thursday to 44.25cts gallon while Enterprise spot propane rose 0.625cts to 45.125cts gallon. There was some short covering today along with end-of-month rebalancing, said a propane supplier in Texas. Hattiesburg spot propane was heard at 47.5cts gallon in a deal done off the Intercontinental Exchange. Alton Wallace, 1.832.646.9229, (c) Copyright 2020 DTN, LLC. All rights reserved.