US propane inventories spike as consumption plummets

05 September 2013 22:01  [Source: ICIS news]

HOUSTON--US propane inventories were up by over 4%, as consumption plummeted by nearly 30%, the US Energy Information Administration (EIA) said on Thursday.

Inventories rose to 64.6m bbl for the week ending 30 August, up from 62.1m bbl the prior week.

Consumption fell to 872,000 bbl/day, down from 1.244m bbl/day the prior week.

The data caused propane spot prices to fall to $1.1375/gal, down from $1.1700/gal the previous day.

Sources said they expected to see supplies increase, after weeks of nearly static movement.

The US has an abundance of propane as a result of relentless shale gas production.

The excess supplies have been finding a home in the form of exports, mostly to Mexico and South America.

But cargoes are starting to make their way to Asia, where propane is coveted for the production of propylene.

 

30-Aug

23-Aug

16-Aug

9-Aug

 

Propane Stocks

64.6

62.1

61.9

61.9

m bbl

Propane Consumption

872

1,244

1,255

1,164

bbl/d *

* figures in thousand bbl

 

 


By: Bobbie Clark
+1 713 525 2653



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