US propane stocks rise by 2.176mn bl: EIA

OREANDA-NEWS. May 29, 2015. US propane inventories rose by 2.176mn bl for the week ended 22 May, according to the Energy Information Administration (EIA).

Market participants had estimated a slightly larger 2.25mn bl build on average in Argus' survey, though predictions ranged wide from a 1.7mn-3mn bl build.

The inventory build boosted nationwide propane stocks to 73.218mn bl, 31.13mn bl higher than in 2014 and 47pc higher than the five-year average.

Padd I inventories on the eastern seaboard reported its largest build so far this year, growing by 613,000 bl to 4mn bl of storage. Marcellus production in the region was said to be strong last week, and market sources reported eastern Canadian y-grade NGLs moving into the region.

Gulf coast inventories saw a relatively small build last week, as propane reserves increased by 975,000 bl to 47.86mn bl. Exports from PADD III during the week were steady, and a narrower PADD II to PADD III arbitrage may have thinned interregional transfers.

In the midcontinent, propane stocks rose by 423,000 bl to stand at 18.66mn bl in reserves. The build could indicate a return to normal supply fundamentals in the region after a month of unseasonably small inventory adjustments.

West coast and Rocky Mountain propane supplies built by 165,000 bl, which brought PADD IV and PADD V inventories to 2.63mn bl.

Spot propane prices at Mont Belvieu, Texas, firmed slightly following the release of the EIA's inventory reports for propane and crude, despite softer WTI movements following a reported draw in crude inventories.

LST propane started the session purchased at 38.75?/USG and firmed slightly to 39.25?/USG following the release of the EIA's data.

At the EPC terminal, propane was sold early at 32.25?/USG, and rose to 34.125?/USG following the release.

At the Conway, Kansas, hub prices firmed after the EIA's data release in thin trade. Conway propane had opened weaker, falling to 32?/USG, before firming back up to 33.75?/USG by midmorning.

Propylene at US bulk terminals fell by 62,000 bl, and product supplied to end-users grew by 121,000 bl.