In early Dec, US propane stocks inched up from their Nov. levels, but remain around 25% lower on the year. PADD III has been hit the hardest since most US exports leave from that region. On Dec. 1, Gulf Coast inventories were 39MM bbl-37% from a year ago and 36% from 2 years ago. Booming production in recent years had made exports attractive, but domestic demand and exports are now exceeding output, according to Petral Consulting. Since propane spot prices have nearly doubled in H2 2017, exports will become less attractive, but committed volumes will still likely leave the country, further tightening the market. Spot FOB Mount Belvieu prices were in the mid-50￠/gal range in the early summer, but have peaked above $l/gal in recent weeks.
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