Propane inventories fall Dramatically 

U.S. propane stocks decreased by 5.6 million barrels last week to 78.1 million barrels as of January 29, 2016, 10.8 million barrels (16.1%) higher than a year ago. Gulf Coast inventories decreased by 3.1 million barrels, Midwest inventories fell by 1.3 million barrels, and East Coast and Rocky Mountain/West Coast inventories each declined by 0.6 million barrels. Propylene non-fuel-use inventories represented 4.1% of total propane inventories.

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What has caused this is a New Export terminal in Louisiana. This export terminal doesn't have the problems that the Houston export terminal has. The river channel has one lane.  Ships  are either going in or going out. Which can add days to a voyage. 

The U.S. Coastal service directs traffic single file in  for so many hours or out for so many hours. The ships are waiting for there number to be called.  The Louisiana port eliminates these long delays because ships comes and go as they please. The product is leaving our Country rapidly. Remember it has been a mild winter.  The dramatic decrease happened just after the Louisiana terminal opened up in January. 

When the delayed Panama expansion opens up in June the large propane tankers will
go through it and the nautical miles are about the same as it is from the United States 
to the far east. As it is from Saudi Arabia to the far east. This will cut weeks off the journey from the United States to the far east. This coupled with the new export terminal in Louisiana that just opened up a few weeks ago is an ominous sign  of the pleated inventories that maybe coming. 


Weekley Petroleum Status Report - click on the link to see the decline
Propane/Propylene .....................................( 78.1) (83.7) (-5.6) (-6.7)







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