US propane stocks seen up by 1.54mn bl

OREANDA-NEWS. August 05, 2015.  The US Energy Information Administration (EIA) is expected to report a 1.54mn bl build in US inventories for the week ended 31 July, according to an Argus survey.

Market participants called for a build ranging between 1mn bl to 2.4mn bl.

Last week propane inventories rose by 1.756mn bl and at 89.446mn bl, US stockpiles stand 50.47pc above the five-year average.

Spot propane prices firmed the session prior to the release of the inventory report, as strength in the WTI market lent support. LST propane started the session purchased at 37?/USG and firmed to an intraday high of 37.625?/USG. The market pared gains for the remainder of the session and was last traded at 37.375?/USG.

EPC propane was purchased early, at 36.5?/USG, and rose steadily to 37.25?/USG.

At the Conway, Kansas, NGL hub, propane activity was sparse, with a single trade transacting at 30.5?/USG.