NWE market expects falling propane cargo prices

14 February 2014 18:13 Source:ICIS News

LONDON (ICIS)--Large propane cargoes are expected to fall in value in northwest Europe as demand from the US declines, sources confirmed on Friday.

Good weather in western Europe has held down local demand, but colder temperatures on the US east coast have supported propane cargo prices by drawing on product and cargoes from the US Gulf that could otherwise be bound for Europe.

As the weather in the US improves, sources expect propane cargo prices to fall.

“US Gulf and [the] east coast seems to be warming up slowly but surely, so you are not going to see any cargoes cancelled out of the Gulf or buying interest from the East Coast,” a shipbroker said.

By Richard Welbirg