Wednesday, September 23, 2015

US propane stocks hit 22 year high

Inventories of propane and propylene have reached a 22 year high in the US. 

As of September 11, 97.7 million barrels of propane and propylene were recorded by the EIA. 

In the first six months of 2015, US propane and propylene inventories were 24.3 million barrels higher on average compared to the same period in 2014. 

In the past year, nearly all of the increase in inventories occurred in the Gulf Coast region. 

Production of propane and other hydrocarbon gas liquids has grown and with it the ability to transport, store and export these commodities has also expanded. 

 Propane is mainly used for space heating and as a feedstock for petrochemical plants. 

It is this use that makes propane consumption highly seasonal and weather dependent. 

The EIA expects propane and propylene inventories to begin the October heating season at record levels, reaching a high of 99.1 million barrels at the end of September.

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