The US propane market has settled down slightly after the mad gyrations of the past two weeks, but Midcontinent prices are likely to remain above normal until after the heating season ends and stocks can rebuild, analysts say. Indeed, prices at the Conway, Kansas, hub are likely to stay slightly above those at the main trading and storage hub at Mont Belvieu, Texas, through the 2014-15 heating season, according to consultancy Cost Management Solutions. This runs counter to the historical trend whereby Mont Belvieu trades at a 10￠ per gallon premium to Conway. Cost Management Solutions sees Conway prices remaining at a $1.50/gal average through March and $1.30/gal in April, and at around $1.20-$1.25/gal over the next 12 months. Mont Belvieu prices are a few cents lower at $1.18-$1.23/gal. On average, propane prices remain at 55%-60% of crude oil, the highest of any natural gas liquid.
展开▼
