The propane market in northwest Europe has become oversupplied this month after trading frms rolled late-August cargoes into September to take advantage of forward premiums, flling already well-stocked storage space. Steady US imports into the region over the past two months, with July volumes reaching a near record high, have boosted regional inventories during weak seasonal demand. And the slight rolling of delivery dates from late August to early September has dented large cargo prices. Propane large cargo cif Amsterdam- Rotterdam-Antwerp (ARA) discounts to front-month cif ARA swaps fell sharply to minus $11.50/t on 26 August from minus 50c/t on 21 August — the widest discount since mid-December 2019. And propane’s price relative to North Sea Dated crude has fallen to 93.5pc from just above parity in the same period.
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