US propane stocks up by 1.756mn bl: EIA

OREANDA-NEWS. July 30, 2015. US propane inventories rose by 1.756mn bl for the week that ended 24 July, according to the Energy Information Administration (EIA).

The build came within market participants' expectations. The 15 market participants surveyed called for an average 1.257mn bl build, with a forecast range of 300,000 bl to 2.8mn bl.

At 89.446mn bl, nationwide inventories are the highest since the EIA began reporting propane stockpiles in 1993, and 50.47pc above the five-year average. US inventories now stand 22.245mn bl above where inventories stood the same time last year.

At the US Gulf coast, inventories rose by 1.179mn bl, after seeing a draw the previous week. Total inventories at PADD III stand at 56.359mn bl.

Market observers attributed the previous week's draw to an increase in exports but noted that last week's exports were slower.

Spot propane prices at Mont Belvieu, Texas, were little changed by the inventory report. At the LST terminal, propane opened the session sold at 39.25?/USG, at parity with the previous session's midpoint, where it oscillated prior to the release of the inventory report.

Following the release of the inventory report, prices fell to 38.75?/USG, but rebounded on gains in the crude market, and traded at 39.5?/USG.

At the EPC terminal, propane opened at 38.5?/USG, where it remained in early trade.

Midcontinent inventories rose by 221,000 bl to 25.467mn bl. The smaller build came as more barrels of propane were heard being shipped south to the US Gulf coast.

Conway, Kansas, propane markets opened weaker on Wednesday at 30.5?/USG and fell in thin trade to 29.75?/USG prior to the EIA data release. Midmorning the price rallied to 31.25?/USG on gains in crude.

Along the east coast, propane inventories rose by 226,000 bl to 4.433mn bl, while at the west coast and Rocky Mountain regions inventories climbed by 131,000 bl to 3.188mn bl.

US propylene at bulk terminals rose by 4,000 bl to 5.053mn, while propane/propylene supplied to end-users fell by 243,000 b/d to 858,000 b/d.

Other NGL and olefin stocks, excluding propane and propylene, grew by 100,000 bl to 114.1mn bl in total.