Mid-Month to Mid-Month: Mid-December Prices Go On Tear

During the latest mid-month period, posted prices at Mont Belvieu strengthened by nearly 7 cents/gal., while spot prices rose just under 4 cents. Group 140, Conway, Kan., postings ended with a 5.53-cent gain and spots pushed up 7.625 cents over the month.

The Mont Belvieu mid-November price, 67.257 cents/gal., came in 3.75 cents above than mid-October’s 63.507 cents, and 2.084 cents higher than a year earlier’s price of 65.173 cents. The next week the price dipped by 2.50 cents to 64.757 cents, and then bounced back to 65.257 cents to finish November. December saw prices strengthen by 3.75 cents to 69.007 cents, and another 0.583 to 69.590 cents. At mid-month, postings increased 4.333 cents to 73.923.

Conway, Kan. posted prices began the period 0.40 cents higher than the month prior, starting at 60.517 cents/gal. Compared to the same time in 2019, the 2020 prices were 3.753 cents less. The next week, the price tumbled 2.796 cents to 57.721 cents, followed by a slight dip in price to 57.473 cents to end November. The new month saw prices rebound to 60.297 cents, then 60.397 cents, and a 5.650 addition took them to 66.047 cents to end the mid-December period.

Mont Belvieu spot propane opened the mid-November period at 56.375-56.875 cents/gal., 3.375 cents above than the previous month’s price, and 2.375 cents higher than a year ago. The following week, prices sluffed off a sizeable 6.625 cents to 49.75-50.625 cents, but the price bounced back to finish the month at 54.50-54.75 cents. December’s 4.375-cent gain pushed spots to 58.875-59.375 cents, and a bit more the next week to 59.00-60.00 cents. Mid-month saw sellers pushing up their price to 67.00 cents, while buyers held to a penny gain at 60.00 cents.

Conway spots opened mid-month at 54.875-55.25 cents, nearly 1.5 cents above a month earlier, and a 3.375-cent increase over a year ago. The following week saw a 5.5-cent decline to 49.375-49.75 cents, only to have the price backtrack to 52.50-53.00 cents at month’s end. The first week of December prices surpassed November’s slight rise and moved to 55.125-55.750 cents, then inched up ever so slightly to 55.50-56.125 cents. The period closed with prices soaring 7 cents to 62.50-64.00 cents/gal.

SOURCE: The Weekly Propane Newsletter, December 17, 2020. Weekly Propane Newsletter subscribers receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to inboxes every week. Receive a center spread of posted prices with hundreds of postings updated each week, along with market analysis, insightful commentary, and much more not found elsewhere.