U.S. propane inventories continue to climb. The EIA reported a larger-than-expected inventory build, pushing stocks to 87.4 MMbbl, 29% above year-ago levels and 35% above the five-year average. Propane exports moved lower week over week but remained above year-ago levels.
The NGL business is one of the most logistically complex segments of the energy industry. To really make sense of it you need to step back and look at the big picture. That’s exactly what our new U.S. NGL Infrastructure Map provides — a comprehensive view of the entire NGL value chain.
U.S. propane inventories increased by 1.1 MMbbl for the week ended June 5, below both industry expectations and the seasonal average. While inventories remain well above year-ago and five-year levels, the pace of stock builds has moderated since early April, particularly in the Gulf Coast region.
U.S. propane inventories continued to build in late May, rising 2.1 MMbbl to 83.3 MMbbl and remaining well above historical levels. Meanwhile, propane exports fell sharply from the prior week to 1.65 MMb/d, though volumes remained higher than the same week last year.
After falling to its lowest monthly average since October 2023 in April, the U.S. propane-to-WTI crude ratio is showing signs of recovery. The ratio started June higher than May's average, as propane regained some ground relative to crude oil. While it's too early to call a sustained turnaround, the early June rebound bears watching.
The U.S. propane market typically follows predictable trends. With much of domestic demand occurring in the colder months, storage builds in the summer and is withdrawn in the winter. But since mid-April, storage levels have increased by only 1.2 MMbbl. Today, we explore what is going on and why.
PADD 3 propane inventories posted a rare 1.2-MMbbl draw as U.S. propane exports surged to a record 2.63 MMb/d. Growing utilization of Gulf Coast flex terminals continues to support strong propane exports and tighter regional balances.
It’s been quite a year already, with energy markets roiled by the Iran war. To survive such swings, you need a deep understanding of market fundamentals so that you can anticipate their effects. That’s today’s subject and the focus of our upcoming School of Energy: Foundations.
U.S. propane inventories remain historically elevated, but this week’s EIA report showed a much smaller-than-expected storage build heading into summer. At the same time, propane exports softened while production stayed near April’s record highs, continuing to support ample domestic supply availability. Read this week’s Propane Billboard for the latest inventory, export and pricing trends.
U.S. propane inventories posted the largest build for the corresponding week since our recordkeeping began in 2011, while production remained near record highs. Stocks continue to sit well above historical averages, reinforcing a well-supplied propane market.
