US propane stocks expected to rise by 1.04mn bl

OREANDA-NEWS. September 10, 2015. US Energy Information Administration (EIA) is expected to report an average 1.04mn bl build in propane inventories for the week that ended 4 September, according to an Argus survey.

The 15 market participants surveyed called for a build ranging from 125,000 bl to 1.5mn bl.

Last week, propane inventories rose by a smaller than expected 620,000 bl nationwide to total 96.344mn bl. At the US Gulf coast, propane inventories rose by a slight 4,000 bl, leaving market participants' uncertain about what the next week's inventory report would show.

As the market draws closer to the peak demand crop-drying and winter season, which typically kicks off in October, market participants expect propane inventory builds to be smaller.

Spot propane prices at the US Gulf coast were mostly range-bound ahead of the EIA's inventory release. LST propane traded between 43.125-44.125?/USG, ending the session slightly higher at 43.375?/USG.

EPC propane was sold early, at 43.5?/USG, and fell to 43.25?/USG in choppy trading.