Onyx Research

Our team of skilled analysts, by utilising the depth and breadth of Onyx's proprietary data, position ourselves at the cutting edge of market analysis. This unique vantage point grants us an unparalleled perspective in the market, enabling us to identify emerging trends and lucrative opportunities.

LPG Report: Pro-painful Stats

1 min read
image (9)

Summary

The LST/FEI arb rallied into the fortnight on the back of bullish EIA stats but soon retraced from -$195/mt on 28 June to -$210/mt on 02 July. Similarly, the prompt FEI/CP spread had a mixed first week of the last fortnight, ticking up from $50/mt to $52.50/mt by 21 June, before then dropping to a low of $47/mt on 26 June before rallying into the new month.

Open interest across the LPG complex continues to be concentrated in the deferred tenors, with Q4’24 LST/FEI seeing open interest standing at 6.6mb, 115% above the 5-year average of 3mb.

EIA Stats for the week ending 21 June reported a 2.092mb build in US propane and propylene stocks. However, stocks at PADD 3 (US Gulf Coast) only increased by 177kb. In the week ending 28 June, total US stocks rose by 2.3mb. While most of this was still concentrated in PADD 2, PADD 4 saw a significant 897kb build. In addition, exports increased to 1.8mb/d.

Looking at a correlation analysis within the LPG complex, the relationship between FEI and CP propane shifted from negative to positive, while that between LST and FEI grew more negative.

Subscribe to Edge to unlock this Research

Edge is the proprietary research arm of Onyx: the #1 liquidity provider of oil futures
OR

Share on

Traders also read...

Follow Us

Our team of skilled analysts, by utilising the depth and breadth of Onyx's proprietary data, position ourselves at the cutting edge of market analysis. This unique vantage point grants us an unparalleled perspective in the market, enabling us to identify emerging trends and lucrative opportunities.