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, dawn.gallagher@dtn.com, www.dtn.com.




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