Gulf Spot Propane Gains as Data show Demand at Record High
1/20 4:37 PM
Gulf Spot Propane Gains as Data show Demand at Record High OAKHURST, N.J. (DTN) --- Spot propane prices at the Gulf Coast firmed Thursday afternoon following a better-than-expected draw in nationwide propane/propylene supplies as implied demand surged to a record high. Federal data show implied demand spiked 689,000 bpd to 2.253 million bpd in the second week of January. The Energy Information Administration in its latest Winter Propane Market Update said propane heating demand for PADDs 1, 2 and 3 heading into February will likely be above average. The agency reported total production of propane/propylene increased 17,000 bpd through Jan. 14 with Gulf Coast output 31,000 bpd higher week-on-week. Stocks at the Gulf declined a second week, down 1.655 million bbl to a roughly eight-month low at 27.290 million bbl. The year-on-year deficit narrowed to 11.9% from 17.4% the week prior but stocks held below the five-year average. In the spot market, sources pegged non-LST propane up 1.25cts to 117.875 gallon while LST spot propane was indexed up 1.25cts at 118.125cts gallon. At the Conway hub, spot propane was slightly lower at 117.375cts while Hattiesburg gained over 2cts to 122.25cts gallon. EIA reported an 11th straight weekly draw in Midwest PADD 2 stocks, falling about 7% to 19.311 million bbl, but were roughly 16% above last year. Dawn Gallagher, 1.732.531.4451, dawn.gallagher@dtn.com, http://www.dtn.com. (c) Copyright 2022 DTN, LLC. All rights reserved.