U.S. Propane Inventories Decline 2.3 MMbbl

U.S. propane stocks fell by 2.3 MMbbl the week ended Feb. 6 to stand at 65 MMbbl, according to the Energy Information Administration (EIA) in its Feb. 11 “This Week in Petroleum” report. As of that reporting period, volumes were 37.1 MMbbl, or 132.8%, higher than a year ago. As a stark reminder of this year’s bounty versus last season’s penury, Midwest supplies alone, which last year stood at a bare-boned total just under 9 MMbbl, were up nearly 12 MMbbl, or 131.6%. Gulf Coast and East Coast supplies for the most recent reporting period fell by 0.7 MMbbl, the Midwest 0.6 MMbbl, and the Rocky Mountain/West Coast region 0.2 MMbbl. Propylene non-fuel-use inventories represented 6.3% of total stocks, up from 6.1% the previous week.

The nation’s propane production for the week was at 1.506 MMbbld, just off from the prior week and only slightly higher than last year. East Coast production was at 0.144 MMbbld, the Midwest 0.333 MMbbld, and the Gulf Coast 0.820 MMbbld. All three regions dipped for the week, while for the year the East Coast and Gulf Coast barely slipped and the Midwest rose only minimally.

Imports were at 0.162 MMbbld, with the East Coast receiving 0.065 MMbbld and the Midwest 0.067 MMbbld. The Gulf Coast barely registered at a paltry 0.005 MMbbld. The weekly total was virtually unchanged, while the year-over-year total was marginally lower. U.S. propane demand for the week was at 1.586 MMbbld, sliding just under the previous week and nearly 0.1 MMbbld less than last year.

The U.S. average residential propane price for the week ended Feb. 9 was 236.2 cents/gal., according to EIA, off 0.6 cents from a week earlier and a steep 140.2 cents lower from a year ago. The New England residential aver­age was reported at 310.0 cents; Central Atlantic, 297.9 cents; Lower Atlantic, 303.0 cents; Midwest, 188.9 cents; Gulf Coast, 244.2 cents; and Rocky Mountain, 213.7 cents. EIA pegged the average U.S. wholesale propane price for the week at 66.8 cents/gal., up 5.6 cents from the previous week and a sharp 194.0 cents lower than last year.