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, dawn.gallagher@dtn.com, www.dtn.com. (c) Copyright 2020 DTN, LLC. All rights reserved.
 
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