Gulf, Midwest Spot Propane Prices Slide on Warming Trend
11/20 4:40 PM
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 comfortable. 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 earlier. 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,, (c) Copyright 2020 DTN, LLC. All rights reserved.
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