Conway, Mont Belvieu Spots Draw Nearly Even

Spot propane at Mont Belvieu and Conway, Kan. was in near-equal territory mid-morning Thursday just prior to the release of the Energy Information Administration’s (EIA) inventory report, delayed by a day due to the Monday Labor Day holiday. Values at both market hubs edged higher compared to the Friday, Aug. 29 email Update, with Belvieu gaining 0.875 to 1.125 cents and Conway hardening by 2.375 cents between the two reporting periods. Market watchers noted that on Wednesday front-month propane prices jumped a penny to two cents, rising along with crude oil.

Mont Belvieu non-LST propane Thursday morning was trading at 103.50-104.125 cents/gal., higher by 1.125 cents for buyers and 1.625 cents for sellers compared to the previous Friday. Low and high deals were reported at 103.625 and 104.00 cents. LST spots, nearly even at 103.50-104.25 cents/gal., were up 0.875 cents for buyers and 1.5 cents for sellers, with low and high trades posted at that same 103.50 and 104.25 cents/gal.

The Group 140 (Conway) bid and offer was at 103.375-104.50 cents/gal. as of mid-morning for a gain of 2.375 cents for buyers and 2.5 cents for sellers. Low and high deals were reported done were at 103.00 and 104.00 cents.

Hattiesburg spots had both risen and narrowed between the two reporting periods, with Thursday trading at 104.50-106.75 cents/gal., higher by 2.5 cents for buyers and a quarter cent for sellers. A single deal was posted as of mid-morning at 106.25 cents.
Spots also gained on the Canadian side. Edmonton propane, at 72.00-73.75 cents/gal., was up 1.25 cents for buyers and 2.75 cents for sellers. At Sarnia, where the bid and offer was at 106.75-108.00 cents/gal., prices strengthened by 1.75 cents for buyers and 1.5 cents for sellers.

Inventory. EIA reported Thursday that U.S. propane inventories climbed another 1.4 MMbbl the week ended Aug. 29, rising to 76.1 MMbbl. That build placed stocks 11.5 MMbbl, or 17.8%, above last year. Gulf Coast volumes rose 0.6 MMbbl and the Midwest 0.5 MMbbl. East Coast supplies gained 0.2 MMbbl, with the balance in the Rocky Mountain/West Coast region.