Energy Markets: A stronger dollar and news of production growth prospects from non-OPEC nations reversed early morning gains on Monday related to concerns of Qatar being cut off by a group of Arab states. Propane did not fare any better with all hubs posting losses on the day on continued concerns surrounding the reduced export pace due to weakened arbitrage opportunities. As of 8:00AM CST, crude oil is down –$0.15/bbl and propane -$.005/gal in early trading.
LPG Exports Drop to 610K BBL/Day: According to a Bloomberg analysis of vessel traffic, exports of propane and butane from US terminals dropped 28% last week to just 610K bbl/day. The re-duced pace would nearly match a 10-month low in export activity. Rumors for June have pegged 6 cargo cancellations, which will translate to a continued sub-1,000k bbl/day pace. The year to date average export pace has been 1,040k bbl/day.