OREANDA-NEWS. US propane inventories rose by a higher than expected 1.563mn bl for the week ended 6 November, hitting a new record high, according to the Energy Information Administration's (EIA) weekly inventory report.

Most market participants surveyed anticipated a build, with estimates ranging from a 300,000 bl draw to a 1.25mn bl increase, but last week's gains exceeded even the most bearish expectations. LST propane fell to 42?/USG following the EIA's report. EPC propane fell to 41.375?/USG.

US inventories now stand at 103.974mn bl, 22.92mn bl higher than during the first week of October last year and about 78pc above the five-year average.

The largest increases occurred on the Gulf coast, which saw a build of 923,000 bl, or slightly less than two VLGCs worth of material. Current PADD 3 inventories now stand at 63.868mn bl. Participants said the Gulf coast build was unforeseen as no major loading delays were reported during the week. Others attributed the gain to languishing retail demand and higher production in the midcontinent, which is pushing an unseasonably large volume of propane south.

Midcontinent gains were in line with expectations, where mild weather contributed to a 448,000 bl build. PADD 2 inventories currently stand at 28.797mn bl. Conway, Kansas, propane fell as low as 37.5?/USG before being rebid at 37.675?/USG mid-morning.

Stockpiles in the Rockies and US West coast regions remained little changed, with only a 37,000 bl build. Along the East coast, propane stockpiles rose by 155,000 bl to total 6.924mn bl as heating demand remains weak.

US propylene at bulk terminals fell by 44,000 bl to stand at 3.687mn bl.