Propane trade flows are changing significantly, largely due to higher production across the United States. Falling prices at Mont Belvieu compared to other international propane hubs have provided exporters with an opportunity to ship greater quantities to buyers in Asia and Europe where petrochemical cracking demand has been strong. Regional supplies from the Middle East, North Africa, and northern Europe are fiercely competing on price with cheaper US imports and, in some cases, are having to resort to exporting cargoes to other markets to sell their available volumes.
All examples in this report are hypothetical interpretations of situations and are used for explanation purposes only. The views in this report reflect solely those of the author and not necessarily those of CME Group or its affiliated institutions. This report and the information herein should not be considered investment advice or the results of actual market experience.
