US propane stock build seen at 900,000 bl

OREANDA-NEWS. April 01, 2015. The Energy Information Administration (EIA) is expected to report a 900,000 bl build in US propane inventories tomorrow for the week that ended 27 March, according to the average of an Argus survey.

The 18 market participants surveyed forecast inventories to move between a 100,000 bl draw or to build as much as 1.6mn bl, with an average of 900,000 bl.

Last week propane stockpiles rose by 719,000 bl. At 55.003mn bl, propane inventories stand 69.45pc above the five-year average and 29.345mn bl above inventories for the third week in March of last year.

Inventories have seen builds for the past two consecutive weeks and the majority of market observers believe stockpiles will continue to build into the spring and summer months.

Spot propane activity at Mont Belvieu, Texas, saw little liquidity ahead of the EIA's data as buyers and sellers stayed out of the March spot market on the final day of the month.

LST propane started the session purchased at 51?/USG and rose to 51.625?/USG before activities waned before midday.

At the EPC terminal, propane surfaced at 51?/USG and rose another 1? before buyers and sellers retreated.

Propane trade in Conway, Kansas, was steady amid bearish sentiment. The market opened at 45?/USG, down 1.50? from the prior day's low. Prices firmed to a high of 46?/USG by midmorning, but retreated to the day's low of 44.50?/USG late in the afternoon, the weakest trade done since 30 January.