US Spot Propane Advances in Thin Trade ahead of EIA Data
6/02 4:58 PM
US Spot Propane Advances in Thin Trade ahead of EIA Data CANYON LAKE, Texas (DTN) -- U.S. spot propane prices extended to fresh near 5-1/2 month highs Tuesday in thin trade at the major supply hubs, boosted by rallying New York Mercantile Exchange oil futures. Conway spot propane advanced 2.3753cts Tuesday to 48.375cts gallon and has gained 5.375cts or 12.5% in the last two trade sessions. At Mont Belvieu, both Enterprise spot propane and LST spot propane traded late day at 49.375cts gallon, with the former up 1.25cts and the latter up 0.875cts. Nearby New York Mercantile Exchange WTI oil futures settled up $1.37 Tuesday at $36.81 bbl, a near three-month high on the spot continuation chart. Transacted volume at the LST, Enterprise and Conway supply hubs Tuesday were each at 80,000 bbl with light activity seen across the hubs for the second straight day. EIA data to be released at 10:30 AM ET Wednesday is expected to show U.S. propane/propylene inventories increased about 1.85 million bbl in the week-ended May 29, a survey of brokers, traders and analysts shows. In the same week last year propane/propylene stocks rose 2.5 million bbl. A trader said he thinks U.S. propane production is continuing to decline and inventories will rise only 1.4 million bbl in the week-ended May 29, while a propane wholesaler said after a few weeks of smaller-than-anticipated stock builds the EIA is likely to make an adjustment and report domestic supplies increased by more than 2 million bbl. The EIA last week reported U.S. propane and propylene supplies built by 1.5 million bbl in the week-ended May 22, with Gulf Coast PADD 3 stocks up 100,000 bbl at 41.2 million bbl, which is about 200,000 bbl or 0.4% below the year-ago level. U.S. propane/propylene exports in the four weeks ended May 22 averaged 949,000 bpd compared with 1.294 million bpd in the same period in 2019. EIA last week reported Midwest PADD 2 propane/propylene inventories rose 1 million bbl to 14.7 million bbl, with stocks up 500,000 bbl or 3.5% from the year-ago level. At the Hattiesburg supply hub, spot propane traded at a more than five-month high 52.50cts gallon, up 1.5cts from the day prior. Alton Wallace, 1.832-646.9229, (c) Copyright 2020 DTN, LLC. All rights reserved.