Canada propane stocks up 550,000 bl in June: NEB
The June inventory build was roughly half of what was reported for May, and 25pc of what was report for June 2014. Total Canadian reserves are now 2mn bl greater year-on-year and stand 38.6pc above the five-year average, the narrowest spread between current stocks and the five-year average since the end of last October.
All the incremental barrels flowed into eastern Canadian storage, which grew by 540,142 bl to 3.76mn bl. Supplies in western Canada actually fell by 6,665 bl during June, as ex-Ferndale, Washington, exports continue to source propane from Edmonton, Alberta.
Two VLGCs were seen loading a butane/propane mix at the Petrogas terminal in Ferndale during June. The propane is sourced from Alberta, while the butane is often shipped in from the Bakken, sources have told Argus.
This unseasonal draw on Alberta's inventories last month followed an unseasonably small, 4,775-barrel build in reserves during May, and could serve as an early indication that the already year-long supply overhang is beginning to clear. Western Canadian inventories still stand at 4.8mn bl, 1.1mn bl more than in June 2014.
Despite a slight easing in Alberta's storage figures, Edmonton propane prices did not firm in June, with spot prices actually quoted at less than 0?/USG for most of the month. Participants also suggest that lower prices may have sparked some US demand as well as a marginal amount of propane rejection.
Eastern Canadian inventories continued to grow rapidly and are now roughly 1mn bl greater than during June 2014. In Ontario propane demand is expected to remain weak until the end of September or early October. Posted prices at Sarnia, Ontario, averaged 41.875?/USG for the month.
Butane stocks rose by 557,269 bl to 5.1mn.
US propane inventories rose to 85.724mn bl in the week ended 3 July, and stand 57pc above the five-year average, according to US Energy Information Administration (EIA) data.
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