Gulf Coast Spot Propane at over 2yrs High as Demand Spikes
1/13 4:42 PM
Gulf Coast Spot Propane at over 2yrs High as Demand Spikes OAKHURST, N.J. (DTN) --- Gulf Coast spot propane prices maintained upward momentum, rallying more than 4cts on the session to the highest levels since October 2018 as continued strong export demand as well as healthy domestic consumption lifted weekly demand to the highest level since the first week of February 2007. RBN Energy in an update today attributed the recent run-up in Mont Belvieu propane prices to "not only cold weather in the U.S., but skyrocketing prices in Asia due not only to record or near-record low temperatures in Japan, South Korea, and northeastern China, but also to shipping and global supply issues." Energy Information Administration data for the first full week of 2021 show domestic propane/propylene exports surged 272,000 bpd to 1.347 million bpd. For the four weeks ended Jan. 8 exports totaled 1.389 million bpd versus 1.132 million bpd in the same period in 2020. Data show implied propane/propylene demand surged 403,000 bpd to 2.104 million bpd, the first time breaching 2 million bpd since the first week of February 2020 while the highest level since Feb. 2, 2007 when demand reached 2.142 million bpd. EIA reported four-week average demand at 1.713 million bpd with the average gaining for the past six weeks while also up 10% from the same time in 2020. Gulf Coast PADD 3 propane/propylene stocks fell a 13th week, sliding 4.279 million bbl to 34.960 million bbl, the lowest level since April 5, 2019. In its latest weekly update, EIA said propane demand past the Martin Luther King Jr. long holiday weekend is "likely to become elevated, starting in PADDs 5 and 4, and later across the remainder of the Lower-48." Mt. Belvieu LST spot propane surged 4.75cts to 92.75cts gallon, the highest price point since Oct. 19, 2018 while Enterprise spot propane jumped 4.125cts to 91.125cts gallon, the highest point since Oct. 19, 2018. EIA reported Midwest PADD 2 propane/propylene stocks dropped a fifth week, sinking 8.3% on the week, down 1.726 million bbl to a 28-week low 18.654 million bbl, 3.1% below the same time last year. At 91cts gallon, the spot propane price at the Conway hub spiked over 6cts to the highest level in slightly more than three years. Dawn Gallagher, 1.732.531.4451, dawn.gallagher@dtn.com, www.dtn.com. (c) Copyright 2021 DTN, LLC. All rights reserved.