Mid-Month to Mid-Month: Propane Prices Down, Up, and Back

(April 16, 2020) — As the novel coronavirus (COVID-19) continues to cause misery around the globe, the past month has only brought more uncertainty to economic markets, and more importantly the lives of people near and far, as the virus is not selective in whom it touches. The recent OPEC+ meeting’s decision to temper crude production to stabilize the price of crude, could provide a better foothold for economies that have been affected. Only time will tell since everyone is trekking through unchartered territory.

Mont Belvieu posted average began the mid-March period at 43.340 cents/gal., off 6.5 cents from a month earlier and a sizeable 36.917 cents/gal. less than a year earlier.

Prices continued to back off, falling 6.333 cents to 37.007 cents, and another 2.334 cents to 34.673 cents/gal. to end March. Belvieu prices changed paths in April, climbing nearly 2 cents to 36.590 cents the first week and nearly a cent the following week to take it to 37.340 cents/gal. With a stronger addition of 5.833 cents mid-April, Belvieu closed the period at 43.173 cents/gal.

Conway, Kan. posted prices began to slide in mid-March at 36.222 cents/gal., down a bit more than a nickel from a month earlier and about half of the prior year’s 70.730 cents. A week later the average fell 7.35 cents to 28.872, but put on the brakes at the end of the month with a gain of nearly a cent to 29.548 cents. Since the beginning of April prices have risen steadily, climbing to 32.020 cents, 35.170 cents, and another bump of more than 5 cents to close the period at 40.246 cents/gal.

Mont Belvieu spot propane started off at 34.50-35.25 cents/gal., off nearly 4 cents from a month prior and down a staggering 34.00 cents from a year earlier. As March progressed, trading slumped another 4 cents to 28.50-29.75 cents, and lost another 2 cents to end the month at 26.75-27.625 cents. April began with a 1.75-
cent loss to 25.00-26.625 cents, but a week later a 5.5-cent increase took spots to 30.50-32.75 cents. With the addition of 3.375 cents, mid-April spots strengthened to 3.875-34.625 cents.

Conway spots opened the new period at 28.50-29.375 cents, off by 7.25 cents month over month and 33.50 cents below a year earlier. Offers fell 5.75 cents the following week to 22.75-23.25 cents, and with another loss of a quarter-cent, March walked away at 22.50-22.75 cents. April turned the tide with a 1.75-cent increase to 24.25-25.625 cents, and then a stronger 4.75-cent gain to 29.00-31.00 cents. An added 4.75 cents brought mid-April in at 33.75-35.00 cents.

SOURCE: The Weekly Propane Newsletter, April 16, 2020. Subscribe to receive all the latest posted and spot prices from major terminals and refineries around the U.S. delivered to your inbox each week. Receive a center spread of posted prices with hundreds of postings updated each week, along with exclusive market analysis, insightful commentary, and much more.