Mont Belvieu, Midwest Spots Little Changed

While overall quiet prevailed in the markets late in the week, spot propane at Mont Belvieu and Conway, Kan. was only fractionally higher and lower Thursday, Dec. 18, compared to the Monday email Update. The Texas trading hub showed minimal gains of just 0.125 to 0.625 cents mid-morning, while the Midwest had slipped 0.625 cents. The late-week moves followed some gains in both markets Monday, when Belvieu stepped up 1.125 cents and Conway jumped 2.5 cents from the previous reporting period. Market watchers note there is currently overhang for propane supply. Lacking sustained frigid temperatures in many regions this heating season, plentiful volumes at storages and customer tanks that were topped off in the fall are weighing on demand, despite prices having plummeted to lows not seen in years. However, weather forecasts call for colder temperatures in January and February. In the short term, a train of storms is predicted over the holidays.

Mont Belvieu non-LST mid-morning Thursday stood at 54.00-54.625 cents/gal., higher by just 0.125 cents for buyers from Monday but down 0.375 cents for sellers. Low and high deals done as of press time were reported at 54.25 and 55.50 cents. LST spots were a bit higher at 54.75-55.25 cents/gal., and were up 0.625 cents for buyers and unchanged for sellers. Low and high trades were posted at 55.00 and 56.50 cents.

The Group 140 (Conway) bid and offer mid-morning was at 51.125-52.875 cents/gal., down 0.625 cents for buyers and sellers from early in the week. Low and high deals were reported at 51.75 and 53.00 cents as of press time.

On the Canadian side, Edmonton propane had strengthened considerably compared to Monday. Standing at 26.25-28.00 cents/gal., the bid gained 6.75 cents while the offer was 6.5 cents higher. Meanwhile, Sarnia spots headed in the opposite direction and lost 2.5 cents for buyers and 2.375 cents for sellers to stand at 79.50-79.75 cents/gal. Thursday.

Elsewhere, NYMEX crude oil was swinging both higher and lower Thursday, weaving in and out of losses by as much as $3 in both directions while continuing to trade below the $60/bbl benchmark. Light, sweet crude for January delivery fell 25 cents, or 0.4%, to $56.26/bbl after settling higher in the previous session. The commodity was reported to have previously gained ground following comments by the United Arab Emirates and Saudi energy ministers, who asserted that the slide in oil prices won’t last long. At the same time, NYMEX natural gas futures held on to their gains Thursday after the Energy Information Administration reported a supply draw of 64 Bcfd for the week ended Dec. 12, slightly above expectations. Natural gas for January delivery rose a nickel to $3.75/MMBtu.