The EIA reported total U.S. propane/propylene inventories had a withdrawal of 190 Mbbl for the week ended March 21, which was less than industry expectations of 1.2 MMbbl and the average draw for the week of 545 Mbbl. Total U.S. propane stocks are now at 43.2 MMbbl, which is 9 MMbbl, or 17%, less than the same week in 2024 and 16 MMbbl, or 27%, less than the 5-year maximum. Inventories are 5.4 Mbbl, or 11%, below the 5-year average.
Storage is rebuilding in PADDs 1 and 2 especially in secondary and tertiary storage locations following the large withdrawals due to previous winter storms. Storage in PADD 3 lowered by an amount to cover the builds in PADDs 1 and 2, indicating that storage is rebalancing throughout the country. Overall, storage has started to turn the corner with warmer weather showing up with the start of spring. We expect that within the next couple weeks, storage builds will start.
