Energy Markets: A bullish set of DOE inventories for crude and propane saw both markets finishing stronger, with propane the best performer across the complex. Conway and Mt. Belvieu based propane gained 3 cents/gal on the day, to pick up 2.1% of relative value to WTI. As of 8:00AM CST, the Far Eastern propane hub has rallied some $20/MT likely in response to the bullish US data and strong demand from PDH plant buyers who are benefitting from lucrative propylene margins.
Propane Stocks Hold Flat; 8MM BBLs Below 5-Yr Average: The weekly DOE stats brought a bullish surprise to the propane market, reporting propane stocks up just +0.25MM BBLs compared to pre-release expectations calling for a 2.0MM bbl build. The stats did cause some confusion as production was down just slightly, while exports fell to 641kbd—the lowest level in six weeks. Those tracking exports closely are assured that the low figure is due to timing, as the number of ships scheduled to load in August will keep exports closer to 1,000kbd for the balance of the month absent operational issues or a major shift in the arb.