US propane stocks expected to rise by 1.09mn bl

OREANDA-NEWS. August 12, 2015. The US Energy Information Administration (EIA) is expected to report a 1.09mn bl build in nationwide inventories for the week that ended 7 July, according to an Argus survey.

The 15 market participants surveyed called for a build ranging between 700,000 bl to 1.8mn bl. The majority of those surveyed who said they expect a smaller build attributed stronger exports last week.

Last week, US inventories rose by 932,000 bl to stand at 90.378mn bl, or at about 56.55pc above the five-year average.

Spot propane prices at Mont Belvieu, Texas, saw choppy trade ahead of the EIA's data amid volatility in the crude market.

LST propane opened the session valued at 37.25/USG and fell to an intraday low of 36.375?/USG, following the WTI market lower. By midday the market rebounded alongside crude and ended the session valued at 37.375?/USG.

EPC propane also opened the session early at 37.25/USG, but when WTI rebounded it rose to 36.75?/USG after tumbling to an intraday low of 36.375?/USG.

At the Conway, Kansas, NGL hub, propane rose 1.25 in intraday trade, ending the session valued at 33.25?/USG.