US propane reserves continue to grow but inventory builds are still behind those seen last year. (image: ilsaviq.livejournal.com)
Domestic propane reserves have posted another weekly increase, but the seasonal build is still slower than last year’s.
Figures released yesterday by the Energy Information Administration show US propane inventories grew by 1.5 million barrels in the last week to end at 53.6 million barrels – the equivalent of 63.3 days’ supply at current demand.
In comparison, there were 62.4 million barrels of propane in storage 12 months ago – the equivalent of 79.4 days’ supply at last year’s consumption rates.
Propane inventories have now grown for 19 consecutive weeks, adding 27.1 million barrels during that time.
Inventories of propane gas traditionally build during the heating off season of spring and summer as the weather warms and there is less need for people to heat their homes. But this year’s seasonal inventory build has lagged behind last year’s because of strong overseas export demand for the gas and an unseasonably cold spring.
Strong imports in the Midwest contributed to the largest regional gain last week, pushing the region’s inventories up by 1.3 million barrels. The East Coast region grew by 200,000 barrels, while the Rocky Mountain/West Coast region added 100,000 barrels. In contrast, the Gulf Coast regional inventories fell slightly for the second-consecutive week on bullish demand.
Propylene stocks for non-fuel usage were stable at 1.8 million barrels, which represented 4.4 percent of total US propane inventories, platts.com reported.