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Mt. Belvieu and Conway propane prices fell further on Wednesday despite supportive stock data from the EIA and broad-based (if modest) strength in energy futures. The EIA reported a 2.0mb draw from propane/propylene inventories for the week ended November 13, topping expectations at 1.3mb. WTI futures rose 0.9% yesterday, and Brent crude futures climbed 1.3% higher. Natural gas futures on NYMEX added 0.7%. Mt. Belvieu TET propane prices, however, fell by 1.4% (75 points) to 53.38c/g and Conway spot prices dropped 2.7% (1.44 cents) lower to 52.00c/g. The premium that Mt. Belvieu TET has regained over Conway is consistent with the shrinking deficit in Midwestern inventories relative to their five-year average (and the smaller surplus in Gulf Coast stocks relative to their historical average).
Propane Spot Prices
Crude futures were falling this morning with news of stronger Libyan oil production and weakness in equities amid fears over the coronavirus, as well as strength in the dollar after a five-session rout. As of this writing, WTI futures were down 0.5% and Brent futures had lost 0.4%. Natural gas futures were also in the red, down 5.5% ahead of the weekly EIA storage report. Propane prices were also falling fairly sharply. Mt. Belvieu TET prices were down 4% (2.13 cents) this morning at 51.25c/g, (non-TET at 51.50c/g), and Conway spots had fallen by 3.1% (1.63 cents) to 50.38c/g.
Selkirk Rack Propane Prices
