Summary
The Jan’25 US Mont Belvieu TET (Energy Transfer) propane contract (C3 LST) weakened from over 83c/gal on 25 Nov to 80c/gal on 04 Dec (at the time of writing). The Jan/Feb’25 LST fell from 1c/gal to 0.25c/gal in the same time and we now see trade houses flipping to selling the spread. Also in the US, EIA stats released on 04 Dec for the week ending 29 Nov showed that US propane production was at 2.8mb/d compared to 2.7mb/d for the week to 15 Nov. After the 4-week average for US propane exports reached an all-time high of 1.958mb/d in the week ending 15 Nov, propane exports softened to 1.881mb/d in the week ending 29 Nov. The Jan’25 LST/FEI arb has firmly breached the -$200/mt resistance level, reaching an intraday high of -$183/mt on 03 Dec. However, the differential stood at -$194/mt on 04 Dec (at the time of writing).
