Insight
Strong Contango Emerges in Propane Market as Supply Glut Drags On
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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 2016 contracts of ($0.11/gal). Such a deep contango indicates that the market is concerned with oversupply.
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:
- 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
What's included
This report contains:
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