OREANDA-NEWS. Nationwide propane inventory levels rose by a larger-than-expected 2.058mn bl for the week ended 10 April, according to the Energy Information Administration (EIA).

The 17 market participants surveyed by Argus expected an average 1.28mn bl build in US propane stockpiles, calling for a build ranging between 400,000 bl to 2mn bl.

At 60.017mn bl, nationwide inventories stand 76.96pc above the five-year average and 31.66mn bl above inventory levels for the second week of April last year.

Participants noted that a slowdown in exports last week, coupled with limited demand for propane, would lead to a larger than expected build in EIA inventories. The 541,000 bl build along the eastern seaboard came in as a surprise to many market participants, contributing substantially to the large build.

Demand for the heating fuel in the northeastern regions of the US has diminished as the region sees warmer spring temperatures. Consequently, warmer weather has aided production, bringing more barrels onto the northeast market.

At the Gulf coast, propane inventories rose by 624,000 bl to 38.864mn bl, compared to a 446,000 bl draw in stockpiles the week prior.

The prior week's draw was mainly driven by strong exports after ongoing closures at the Houston Ship Channel caused a backlog in late March.

Exports normalized last week, resulting in a larger build at the Gulf coast.

Spot propane prices at Mont Belvieu, Texas, firmed on the release of the EIA's data, borrowing its strength from the WTI market, which saw a smaller than expected build in stockpiles.

LST propane started the session stronger day-on-day, at 55.75?/USG, and fell to 55.125?/USG before the release of the EIA data. Following the report, prices changed hands at 55.5?/USG and oscillated down to 55.375?/USG.

EPC propane started the session valued at 55.25?/USG and also fell before the release of the EIA's data, to 55.375?/USG. On the release, propane traded at 55.5?/USG before activities waned.

At the midcontinent, propane inventories accounted for the largest build, of 859,000 bl to 16.776mn bl.

At Conway, Kansas, propane trading was heavy leading up to the Wednesday EIA inventory data release. The market opened at 49?/USG and quickly dipped down to 48.25?/USG. Trading brought the price up to 48.75?/USG at the time of the inventory release, at which point the market went quiet.

The large draw reported in PADD II came as no surprise to most participants and prices were largely steady. The slow price movements in PADD II widened the gap between Conway and LST propane, the former of which traded at a 6.25-7? discount.

Stockpiles at the Rocky Mountains and west coast regions rose by 34,000 bl to 2.17mn bl.

Propylene at bulk terminals across the US rose by 3,000 bl. Product supplied to end-users fell by 293,000 b/d to 868,000 b/d.