Thursday, February 12, 2015
Spot propane at Mont Belvieu and Conway, Kan. Thursday, Feb. 12 tempered strong early-week gains, with trading at the Texas hub little changed from the Monday email Update and the Midwest rising another penny. Early in the week prices at Belvieu hardened by 2.5 to 2.875 cents, while by Thursday they were either 0.125 cents lower or unchanged. Conway strengthened 3.25 cents when the markets opened after the weekend, and as the week was ending prices had edged up another penny.
Stronger crude oil prices and colder weather are teaming up to bolster prices, and healthier propane inventory draws late in the heating season are starting to resemble a more typical demand scenario. Crude futures were once again above $50/bbl on NYMEX, and on Thursday futures for March delivery rose $1.59/bbl, or 3.3%, to $50.43/bbl. Market watchers signaled that geopolitical risk premiums were in play once again, adding that the move higher was prompted by an agreement to halt months of deadly fighting in Ukraine, which eased concerns over Russian oil demand. However, they cautioned that the ongoing supply glut for the commodity in the U.S. continued to weigh on prices, keeping them in check. The Energy Information Administration (EIA) reported Wednesday that U.S. crude stockpiles climbed 4.9 MMbbl over the previous week to reach 417.9 MMbbl.
Mont Belvieu non-LST spot propane mid-morning Thursday was trading at 55.875-56.50 cents/gal., off 0.125 cents for buyers and a quarter cent for sellers from Monday. Low and high deals were reported at 55.625 and 55.875 cents. LST spots, at 55.75-56.25 cents/gal., were unchanged for buyers and down a quarter cent for sellers, with low and high trades posted at 55.50 and 56.50 cents.
The Group 140 (Conway) bid and offer were at 52.25-53.50 cents/gal. for a gain of a penny for sellers and 1.375 cents for sellers compared to Monday. Low and high deals as of mid-morning were on the board at 51.75 and 53.75 cents.
Results on the Canadian side were mixed late in the week. Edmonton spots stepped up 4 cents for buyers and 4.25 cents for sellers to stand at 21.00-21.50 cents/gal. Thursday. Sarnia spots, at 69.50-70.00 cents/gal., dipped a half cent for buyers and a penny for sellers.
Stronger crude oil prices and colder weather are teaming up to bolster prices, and healthier propane inventory draws late in the heating season are starting to resemble a more typical demand scenario. Crude futures were once again above $50/bbl on NYMEX, and on Thursday futures for March delivery rose $1.59/bbl, or 3.3%, to $50.43/bbl. Market watchers signaled that geopolitical risk premiums were in play once again, adding that the move higher was prompted by an agreement to halt months of deadly fighting in Ukraine, which eased concerns over Russian oil demand. However, they cautioned that the ongoing supply glut for the commodity in the U.S. continued to weigh on prices, keeping them in check. The Energy Information Administration (EIA) reported Wednesday that U.S. crude stockpiles climbed 4.9 MMbbl over the previous week to reach 417.9 MMbbl.
Mont Belvieu non-LST spot propane mid-morning Thursday was trading at 55.875-56.50 cents/gal., off 0.125 cents for buyers and a quarter cent for sellers from Monday. Low and high deals were reported at 55.625 and 55.875 cents. LST spots, at 55.75-56.25 cents/gal., were unchanged for buyers and down a quarter cent for sellers, with low and high trades posted at 55.50 and 56.50 cents.
The Group 140 (Conway) bid and offer were at 52.25-53.50 cents/gal. for a gain of a penny for sellers and 1.375 cents for sellers compared to Monday. Low and high deals as of mid-morning were on the board at 51.75 and 53.75 cents.
Results on the Canadian side were mixed late in the week. Edmonton spots stepped up 4 cents for buyers and 4.25 cents for sellers to stand at 21.00-21.50 cents/gal. Thursday. Sarnia spots, at 69.50-70.00 cents/gal., dipped a half cent for buyers and a penny for sellers.
