US propane inventory builds lighter than average
May 29, 2018 By Mark Rachal and Dale Delay
U.S. propane inventory increased very lightly last week. Find out why.
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U.S. propane inventory increased very lightly last week. Find out why.
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This year, domestic demand has remained high due to a long winter heating season, when compared to recent winters.
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Last Wednesday the EIA reported that U.S. propane inventory stood at 35.872 million barrels for the week ending April 13.
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Propane’s relative value to West Texas Intermediate crude is already slightly below the low end of the range we expected for this summer.
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Last week, the U.S. Energy Information Administration reported U.S. propane inventory had fallen to 36.759 million barrels for the week ending March 16.
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U.S. propane production from natural gas processing plants jumped in October 2017, according to the latest data from the U.S. Energy Information Administration.
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The EIA says these new measures, established in response to industry and stakeholder concerns, should provide additional information so propane dealers and customers can plan adequately.
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U.S. propane retailers got an early Christmas present when the EIA reported a surprise 1.316-million-barrel build in U.S. propane inventory.
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As we head into the coming heating season, the embarrassment of being caught “naked” on the supply side is a real concern.
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It has been a tough three weeks for propane inventories, as the typical period of inventory build nears its end.
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