Mont Belvieu and Conway Spots Fall Again

Spot propane at Mont Belvieu and Conway, Kan. softened still further Thursday, building on the losses of the previous week to decline another 2.625 to 2.75 cents at Belvieu and an additional 1.875 cents at Conway. Strong back-to-back inventory builds of 1.4 MMbbl and 1.7 MMbbl, respectively, over the past two weeks appear to have temporarily eroded sentiment for stronger prices, note market watchers, who add that nonetheless out-month (cold-month) prices remain harder. Early-week trading saw the Texas marketing hub lose 1.125 to 1.25 cents and the Midwest 3.375 cents, while late the previous week values dropped 1.5 cents at Mont Belvieu and 3.375 cents at Conway.

With propane inventories now at 79.1 MMbbl, and absent cold weather or crop drying demand, prices have slumped deeply from September highs. Weather forecasters, while acknowledging that fall has arrived, comment that the first of autumn feels more like summer in many regions. And the trend for above-average temperatures from the Plains to the Northeast is seen as continuing as cold air remains trapped over northern Canada.

Mont Belvieu non-LST spot propane mid-morning Thursday stood at 103.50-103.875 cents/gal., down 2.625 cents for buyers and 2.875 cents for sellers from Monday. Low and high trades posted as of press time were at 103.50 and 105.125 cents. LST spots, at 103.50-104.375 cents/gal., were off 2.75 cents for buyers and 2.625 cents for sellers, with low and high deals done at 104.00 and 105.125 cents.

The Group 140 (Conway) bid and offer were at 102.75-103.50 cents/gal. for a loss of 1.875 for buyers and 1.625 cents for sellers. Low and high trades were reported at 103.00 and 104.25 cents as of mid-morning.

Canadian spots posted minimal gains over the week, sustaining their climb higher over recent reporting periods. Edmonton spots Thursday were at 94.00-94.75 cents/gal., up a half cent for buyers and sellers from early in the week. Sarnia spots, at 116.00-116.75 cents/gal., gained a quarter cent for buyers and sellers.

Elsewhere, NYMEX crude oil futures moved a bit lower Thursday after rising to a four-day high. Crude for November delivery traded at $92.60/bbl, off from $92.80 on Wednesday.