US Northeast Propane Retailers said to be Building Stocks
6/04 12:45 PM
US Northeast Propane Retailers said to be Building Stocks CANYON LAKE, Texas (DTN) -- Concerns over a possible shortage of propane supplies next fall in the U.S. Northeast has prompted some retailers in the region to fill tanks, despite regional inventory levels at the end of May that were at a record-high for the time of year at 6 million bbl. Energy Information Administration data for May 29 showed Northeast PADD 1 propane and propylene stocks at 6 million bbl, up 2.4 million bbl from the same time in 2019 and about 2.2 million bbl above the five-year average. With expectations of lower associated gas production later this year, the likelihood of reduced supplies of propane as the heating season gets underway has retailers in the Northeast concerned the market will be short, said a market source. Propane suppliers in the Northeast are said to be railing in stocks from the Gulf Coast and also nominating higher-than-normal volumes for delivery on the Dixie Pipeline, which terminates in Apex, North Carolina. Higher propane prices in the Northeast could squeeze exports from Sunoco's terminal in Marcus Hook, Pa., said a market source. The economics of exporting propane from the Northeast are not good at this time and higher prices could result in lower shipments, he said. The average contract rack price of propane at the Selkirk terminal in Albany County, New York, on Thursday was at 80.46cts gallon, which compares with 72.57cts gallon at the same time in 2019. Alton Wallace, 1.832-646.9229, (c) Copyright 2020 DTN, LLC. All rights reserved.
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