Gulf, Midwest Spot Propane Prices Slide on Warming Trend
OAKHURST, N.J. (DTN) --- Gulf Coast and Midwest spot propane prices advanced
on the session Friday, while posting multi-cent losses for the week as
unseasonably warm weather dampens heating demand thus far and supplies remain
The latest federal data show Midwest PADD 3 propane/propylene supplies above
both the year-ago and five-year average levels while Gulf Coast PADD 3 stocks
are down from a year earlier but holding above the five-year average.
According to DTN Weather data, U.S. propane weighed heating degree days at
119 the week ended today are down 35 days from a year ago while next week's
forecast at 119 compares with 135 HDDs a year earlier.
"The warmer than normal temperatures in the central and eastern U.S. are
forecast to continue in the 6-10 day period," wrote DTN Weather.
In its midweek update, the Energy Information Administration cited National
Oceanic Atmospheric Administration forecasts through Dec. 1 citing
"warmer-than-normal temperatures with higher probability in the upper-Plains
and East Coast," furthering that the "highest probability of above-normal
temperatures centralized in the upper-Plains."
"With nearly 75% of propane-heated households in PADDs 1 and 2, propane
demand is expected to decline to below average for this time of year with the
seasonally warmer temperatures across those regions. Propane demand in PADD 5
is expected to be normal for this time of year," EIA said.
Conway spot propane was last seen at 49.5cts gallon, down 4cts from a week
Trade sources pegged Enterprise and LST spot propane at 51.375cts gallon,
both more than 3.5cts on the week.
Dawn Gallagher, 1.732.531.4451, firstname.lastname@example.org, www.dtn.com.
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