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Propane prices fell over two cents yesterday, their second session lower following a four-session rally at Mt. Belvieu. The losses came despite a bullish weekly EIA propane/propylene inventory report showing a larger than expected draw from inventories of 4.08mb, and flat-to-lower trade in crude futures. Brent settled just north of the unchanged mark, while WTI shed 0.2%. Natural gas futures climbed 1.8% higher.
Propane Spot Prices and Spreads
Crude futures were rallying this morning, seeing gains of over 3.5% with the US dollar index reversing course and taking a 0.4% tumble, despite mixed trade in US and European stock market indexes. A readily identifiable source for the price strength was not apparent. Propane prices were strengthening as well, with Mt. Belvieu TET up 2.4% (1.37 cents) at 59.50c/g (non-TET at 59.75c/g) and Conway spots up 1.6% (88 points) at 55.25c/g, suggesting the north-south spread had widened to over four cents. Meanwhile, natural gas futures were up 0.9% ahead of the weekly EIA storage report.
US Propane/Propylene Stocks
