US propane stocks up by 932,000 bl: EIA

OREANDA-NEWS. August 06, 2015. US propane inventories rose by a smaller than expected 932,000 bl for the week that ended 31 July, according to the Energy Information Administration (EIA).

Market observers on average expected a 1.54mn bl build in US inventories with forecasts ranging between a 1mn bl to 2.4mn bl.

At 90.378mn bl, US inventories are 56.55pc above the five-year average and 30.305mn bl above where inventories stood during the same week last year.

The midcontinent accounted for the majority of the build, with inventories climbing by 219,000 bl to 26.123mn bl. Less volumes of propane were heard moving south to the Mont Belvieu, Texas, storage hub.

Spot propane prices at Conway, Kansas, fell slightly after the release of the EIA's data in robust trade. The market opened at 31.25?/USG and firmed to 32?/USG prior to the inventory report. Following the release of the report, propane fell to 31.5?/USG and continued to soften to 31.375?/USG.

At the Gulf coast, propane inventories rose by a smaller 219,000 bl to total 56.578mn bl. The smaller build came as fewer barrels were heard moving south and ongoing exports left less volumes in storage.

Spot propane prices at Mont Belvieu were mostly range-bound following the release of the data. LST propane firmed 0.625? following the report, to 37.5?/USG, but ultimately softened to 37?/USG shortly thereafter.

EPC propane also jumped up on the release, to 37.125?/USG, but pared earlier gains in the trade session following. It was last traded at 36.75?/USG.

Along the eastern seaboard, propane inventories rose by 65,000 bl, to 3.253mn bl, while at the west coast and Rocky Mountain regions inventories fell by a slight 9,000 bl to 4.424mn bl.

US propylene at bulk terminals fell by 255,000 bl to 4.798mn, while propane/propylene supplied to end-users rose by 197,000 b/d to 1.055mn b/d.

Other NGL and olefin stocks, excluding propane and propylene, rose to 118.6mn bl.