OREANDA-NEWS. US propane inventories fell by 274,000 bl for the week ended 18 March, according to the Energy Information Administration's (EIA) weekly report.

The draw pushed inventories down to 62.226mn bl, eliminating the build reported last week. Propane stocks are up 13.32pc from last year and are 61.86pc higher than the five-year average.

Market participants had expected anywhere from a 2mn bl draw to an 800,000 bl build. Propane fell in early discussions at Mont Belvieu Wednesday.

The bulk of the decline came from the Gulf coast, which saw a 410,000 bl draw as exports continue despite seasonal fog delays on the Houston Ship Channel. At least four VLGCs left the Gulf region during the week.

PADD 1 saw a 96,000 bl build and the midcontinent saw only a slight 3,000 bl build as propane continues to flow south for export. PADD 4 and 5 saw a combined 38,000 bl build.

US propylene at bulk terminals rose by 95,000 bl to stand at 3.108mn bl, while US propane/propylene supplied to end users rose by 34,000 b/d to 1.189mn b/d.