Conway Spots Drop Nearly a Dime, Belvieu Lower

Spot values at Conway, Kan. and Mont Belvieu took another hit Thursday as Midwest propane plunged nearly 10 cents and trading at the Texas hub fell 4.626 to 4.75 cents compared to the Monday email Update. The losses follow the markets moving down 3.75 cents at Conway and 2.25 cents at Mont Belvieu Monday. Even as arctic air sweeps three-quarters of the nation and snowfall is being measured in feet, spots since early November have dived 20.875 cents at Conway and 15.375 cents at Belvieu.

In spite of the early arrival of winter conditions, U.S. propane inventories show little sign of budging off their historic highs. The recent onslaught of frigid conditions has had little effect on stocks, and they managed a 0.1-MMbbl build for the week ended Nov. 14, although at the same time Midwest volumes dipped 0.3 MMbbl. At 81.2 MMbbl, the nation’s primary supplies remain 22.8 MMbbl, or 39% higher than last year. Furthermore, weather forecasters Thursday were calling for spring-like conditions to arrive in the South, Midwest, and Northeast over the weekend. However, and fortunately for propane prices, that warmth was expected to be short-lived.

The Group 140 (Conway) bid and offer mid-morning Thursday was at 75.125-76.00 cents/gal., lower by 9.875 cents for buyers and 9.75 cents for sellers from Monday. Low and high deals done as of press time were reported at 72.50 and 75.75 cents.

Mont Bevieu non-LST propane was trading at 73.50-73.875 cents/gal., down 4.75 cents for buyers and 5.125 cents for sellers. Low and high trades were posted at 72.75 and 74.00 cents. LST spots, at 73.625-73.875 cents/gal., were off 4.625 cents for buyers and 4.875 cents for sellers, with low and high deals at 73.00 and 74.00 cents.

Edmonton propane was trading down a steep 8.5 cents for buyers and 5.5 cents for sellers at 54.00-59.00 cents/gal. Sarnia spots, at 91.50-94.50 cents/gal., dropped 6.5 cents for buyers and 4 cents for sellers.
Elsewhere, crude oil on NYMEX Thursday traded below $75/bbl after inventories rose more than expected the week ended Nov. 14. Crude for January delivery was up fractionally to $74.63/bbl. WTI benchmark crude had fallen to $74.50/bbl Wednesday, a third straight daily decline. Meanwhile, natural gas futures added 4 cents to trade at $4.411/MMBtu. A day earlier, prices surged 12.7 cents to $4.371/MMBtu as investors bet that chilly conditions would boost early-winter demand for the heating fuel.