OREANDA-NEWS. US propane inventories rose by 1.865mn bl to 80.66mn bl for the week ended 12 June, according to the Energy Information Administration (EIA).

US propane inventories stand 60.35pc above the five-year average and are 29.419mn bl, or 57pc, above year-ago levels.

The build was largest on the US Gulf coast, with inventories climbing by 1.014mn bl to 51.213mn bl. The prior week's build of only 4,000bl stemmed from storage constraints at salt caverns following heavy rainfall in the region.

The nationwide build came in within expectations, as participants surveyed expected a build anywhere between 1.6mn-2.5mn bl.

Spot propane prices at Mont Belvieu, Texas fell following the release of the data, with LST propane opening at 38.25?/USG and falling to 36.75?/USG. LST propane extended losses to 35.5?/USG in early trading. At the EPC terminal, propane opened at 35?/USG and fell to 34.5?/USG.

Conway, Kansas, propane also tumbled from 32?/USG to 30?/USG as EIA data showed a build of 891,000bl in the midcontinent, the third consecutive week of roughly 900,000 bl inventory growth.

Market participants in the region speculated whether propane injections have reached a balance, as unloading slots at midcontinent rail terminals are almost entirely booked through September, which would put a hard cap on how much product could flow into the region.

Along the eastern seaboard inventories fell by 62,000 bl to stand at 5.029mn bl, mostly driven by exports. In West coast and Rocky Mountain regions, inventories rose by a slight 22,000 bl to 2.78mn bl.

Propylene at bulk terminals across the US fell by 3,000 bl, and product supplied to end-users fell by 14,000 b/d.