US propane stocks up by 620,000 bl: EIA

OREANDA-NEWS. September 03, 2015. Nationwide propane inventories rose by a smaller than expected 620,000 bl for the week that ended 28 August, according to the Energy Information Administration's (EIA) weekly inventory report.

Market observers on average were expecting a 1.44mn bl build in propane stockpiles, with forecasts calling for a build ranging between 1mn bl to 1.8mn bl.

At 96.344mn bl, US propane inventories stand about 46.29pc above the five-year average and 20.22mn bl above where inventories stood during the final week in August last year.

Stockpiles at the US Gulf coast surprised most market participants by rising by a slight 4,000 bl to total 60.688mn bl. Some attributed the small build to exports as loading times resumed last week at Nederland, Texas, after compressor issues had slowed down loadings at the terminal.

Others attributed the smaller build to the August ad valorem taxes, but the impact of the annual taxes was unclear.

Despite the smaller build, spot propane prices at Mont Belvieu, Texas, fell after the release of the EIA's inventory report, likely borrowing much of the weakness from declines in the crude market.

LST propane reached a morning high of 43.5?/USG, up 1.25? from where it opened the session, but sank down to 41.5?/USG in trade following the EIA's report.

EPC propane also fell to 41.5?/USG, down from a morning high of 43.25?/USG.

Propane stockpiles at the midcontinent rose by 433,000 bl to total 27.317mn bl.

Spot propane prices at Conway, Kansas, mirrored sentiment seen at the US Gulf coast, showing earlier strength but ultimately falling after the EIA stocks report.

Conway propane was sold early for 38?/USG, and rose to hit a high of 38.5?/USG. In trade following the report, propane pared gains to 37.5?/USG.

Along the Atlantic coast, propane stockpiles rose by 216,000 bl to total 4.530mn bl, while at the Rocky Mountains and west coast regions inventories fell by 34,000 bl to stand at 3.808mn bl.

US propylene at bulk terminals rose by 88,000 bl to 4.612mn bl, while propane/propylene supplied to end-users rose by 194,000 b/d to 1.117mn b/d.

Other NGL and olefin stocks, excluding propane and propylene, rose to 127.4mn bl.