Analysts said there was a decrease in liquefied petroleum gas (LPG) inventories over the past spring, and summer months might result to high demand this coming winter, Platts reported.
According to data from the Joint Data Organizations initiative, LPG stocks throughout Europe from March to May remain below stock levels at the same time last year. In the same three months, stocks also dropped by 462,000 metric tons year on year, including 157,000 metric tons across Northwest Europe storage facilities in the Netherlands, Germany, France and Belgium.
The prices of butane and propane currently stayed near levels reached last January, as the demand for both LPG increases during winter months. Butane demand could rise by the start of September as winter-blending for gasoline commences on the said month. According to sources, depending on the arbitrage to the U.S, blenders would consider butane or naphtha depending on their stock levels—though butane remains aggressive compared to naphtha, per a separate Platts report.
Recently, the price of propane transported by rail and trucks has hit $599 per metric ton—its highest since January.
One of the reasons why butane and propane prices remain flat is due to the strengthening crude complex. Hellenic Shipping News reported that the Rhine’s low water levels due to drought and heat wave also hinder shipping services in Germany. Ships are only able to carry less cargo, which affected the stock building of these LPG.
From March to May, there was also an increase in demand for propane after a weak winter demand for all LPG, but it also emptied the stocks of propane for spring. Meanwhile, a close gasoline arbitrage from Europe to the U.S. repressed the demand for butane as a gasoline blending ingredient.
LPG inventories are usually restored during spring and summer, but because its prices dropped due to the loss of demand, the stock rebuilding process was not able to push through.
Which of these lesser-known EV stocks will be the next Tesla?
The competition on the EV market is getting tighter, as several lesser known manufacturers are raising the interest of investors....
Gigantic cannabis plantation officially opened in Northern Macedonia
In addition to the cannabis plantation, PHCANN - which is also listed on the New York Stock Exchange - has...
Is the Ethereum 2.0 deadline bullish for the ETH course?
With the launch of Ethereum 2.0, a new era could begin for the young Decentralized Finance (DeFi) industry. The change...
Exit for an SME financed with equity crowdfunding: Cesynt shares on Euronext
Founded in 2010, Cesynt had already conducted a first equity crowdfunding campaign on Opstart in June 2018, collecting $297,000 (€250,000),...
The business environment in Morocco: the EESC calls for more effort
In its annual report, published in the Official Gazette on November 17th, 2020, the Economic, Social and Environmental Council in...
Africa7 days ago
Syngenta Morocco and Agrin help small farmers to cope with the effects of the pandemic
Cannabis6 days ago
CBOS survey: over 60% of Poles are for cannabis legalization
Biotech6 days ago
Ability Pharma closes €2 million round to advance antitumor development
Featured6 days ago
Moneyfarm launches smart bank transfer to invest directly from the current accounts of multiple banks