Since the beginning of May, spot propane prices have declined from $0.54/gal to $0.38/gal, with some US Gulf Coast locations trading as low as $0.33/gal. Weak global demand for US exported LPG combined with a tight VLGC market have helped , the Mont Belvieu propane futures curve has recently moved into steep contango between the June 2015 and February 2016 contracts of ($0.11/gal). Such a deep contango indicates that the market is concerned with oversupply.
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Insight | May 2015
Strong Contango Emerges in Propane Market as Supply Glut Drags On
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