Mont Belvieu and Conway Spots Dip

News
Spot propane at Mont Belvieu and Conway, Kan. Thursday, Feb. 19 posted some minimal losses compared to the Friday, Feb. 13 Update. Belvieu trading mid-morning was off a half cent to 0.625 cents com­pared to the previous reporting period, and Conway was down a penny. While bitter winter cold continues to grip much of the country, propane inventories remain well above the seasonal average at 61.5 MMbbl as the heating season winds down. Nor have there been any significant repeats of last winter’s logistical and supply woes this year, with regional markets remaining well supplied.

Also weighing on propane prices were crude oil futures that fell to their lowest level in a week Thursday. The move down followed the Energy Information Administration (EIA) reporting that supply data showed inventories were high and still rising. Oil for March delivery lost $2.13, or 4.1%, to fall to $50.01/bbl on NYMEX.

Mont Belvieu non-LST spot propane mid-morning Thursday was trading at 58.50-58.75 cents/gal., down a half cent for buyers and a penny for sellers from the previous Friday. Low and high deals were reported at 57.50 and 59.00 cents. LST spots, at 58.375-58.75 cents/gal., were off 0.625 cents for buyers and 1 cent for sellers, with low and high trades posted at 57.375 and 58.875 cents.

The Group 140 (Conway) bid and offer were at 54.75-56.00 cents/gal., lower by a penny for buyers and a half cent for sellers compared to the previous reporting period. Low and high deals early on were at 54.00 and 55.75 cents.

Canadian propane, however, gained, with Edmonton spots stepping up a steep 4.75 cents for buyers and 4 cents for sellers to stand at 25.75-26.00 cents/gal. Thursday. Sarnia propane was at 72.50-74.00 cents/gal., higher by 4.25 cents for buyers and 4.5 cents for sellers.

Inventory. EIA reported Thursday that U.S. propane inventories dropped 3.5 MMbbl the week ended Feb. 13. The Gulf Coast gave up 2.1 MMbbl and the Midwest 1 MMbbl, with the balance of the draw on the East Coast and in the Rocky Mountain/West Coast region. Stocks stood at 61.5 MMbbl, 34.8 MMbbl above a year ago.

OUR DIGITAL PARTNERS