US propane stocks seen up by 1.99mn bl

OREANDA-NEWS. July 15, 2015. The Energy Information Administration (EIA) is expected to report a 1.99mn bl build in propane inventories for the week that ended 10 July, according to an Argus survey.

The 15 market observers surveyed called for a build between 1.5mn bl to 2.6mn bl. The participants on the higher end of the range said exports out of the US Gulf coast were slower and resulted in more barrels of propane staying in storage.

Observers on the lower end of the range said the report could reflect a lower build as a correction to last week's larger-than expected build.

Last week's inventory report showed a 2.144mn bl build in stockpiles, bringing total US inventories to 85.724mn bl, or 57.6pc above the five-year average.

Spot propane prices at Mont Belvieu, Texas, firmed in active trade, mostly gaining alongside a rally in crude. LST propane firmed to 41.75?/USG, 1? stronger than its open, while EPC propane firmed to 39?/USG, gaining 0.75? in early trade.

Conway, Kansas, propane markets opened weaker on Tuesday, but pared losses to rise intraday. The product traded heavily in the morning, at 31.75-33.5?/USG, but activity tapered off in the afternoon.