Insight

Strong Contango Emerges in Propane Market as Supply Glut Drags On

Loading current market price

Get this report

Loading current market price

Get this report as part of a subscription

Enquire about Subscriptions

Already have subscription? Sign In

Further information

Pay by Invoice or Credit Card FAQs

Contact us

For further information about this report submit the form below.

Report summary

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 2016contracts of ($0.11/gal). Such a deep contango indicates that the market is concerned with oversupply.

What's included

This report contains

  • Document

    Strong Contango Emerges in Propane Market as Supply Glut Drags On

    PDF 390.75 KB

Table of contents

  • Stubborn Production and Disappointing LPG Exports
  • US Propane Seeking Domestic Petchem Solvers and Possibly Fuel Demand
  • Can US Petrochemical Market Solve a Propane Supply Glut?

Tables and charts

This report includes 5 images and tables including:

Images

  • US Waterborne LPG Exports and Terminal Capacity
  • Propane Freight Rates From USGC to Europe and Japan
  • United States Ethylene Cash Costs
  • LPG Volumes at the Flexible Steam Cracker
  • US Propylene Nonfuel Use Stocks at Bulk Terminals

Questions about this report?

  • Europe:
    +44 131 243 4699
  • Americas:
    +1 713 470 1900
  • Asia Pacific:
    +61 2 8224 8898