US propane inventories reach record high in September

17 October 2012 17:24 Source:ICIS News

HOUSTON (ICIS)--US propane inventories were at a record 75.6m bbl at the end of September, the Energy Information Administration (EIA) said on Wednesday.

The increase in inventories is the result of increased production, the EIA said.

“Propane supply in the US averaged 1.24m bbl/day for the third quarter, 13.4% more than third-quarter average demand,” the EIA said.

“Third-quarter average weekly supply was 5.3% above second-quarter levels, despite an 8.0% quarter-on-quarter drop in the average weekly Mont Belvieu spot price.”

Spot prices for propane stored at Mont Belvieu, Texas, have been in the 90-95 cents/gal range, their lowest level since the third quarter of 2009.

Additionally, the US has become a net exporter of propane for the first time since the EIA and US Bureau of the Census trade data series began in 1973.

“From January 2012 through July 2012, the US exported an average of 0.16m bbl/day, while importing an average of 0.13m bbl/day,” the EIA said.

($1 = €0.77)

By Bobbie Clark