21 January 2014 21:36 [Source: ICIS news]
HOUSTON (ICIS)--US propane spot prices at the Mont Belvieu hub in Texas spiked to their highest levels in more than two years on Tuesday.
Propane was assessed at $1.4825/gal on Tuesday, as supplies at the Conway hub in Kansas continued to decrease. Propane was assessed at $1.3800/gal.
Tuesday’s spot price was the highest since the week ending 11 November 2011, when they were at $1.4863-1.4950/gal.
Sources said the Conway supply situation has gotten worse, sending prices at that hub, as well as Mont Belvieu, soaring.
According to the Energy Information Administration (EIA), supplies in the Midwest region, where Conway is located, have fallen by 44.0% year on year to 11.5m bbl for the week ending 10 January.
Propane exports have also risen to record levels, further stripping supplies. Exports were at 370,000 bbl/day for the same week, more than double from 132,000 bbl/day a year ago.
US spot propane prices have been on a steady ascent since mid-2012, when prices fell below 70 cents/gal.
Since August 2013, propane has risen by 46.4%, on strong demand from a harsh winter, crop drying for a record corn harvest and burgeoning exports.
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