Price spread between Mont Belvieu, Conway balloons

February 26, 2018 By and    

The price spread between Mont Belvieu and Conway propane has increased significantly this month. However, as the impacts of winter demand wane this time of year, it is not unusual to see Conway prices move toward the weak side.

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Early February has run some of the highest spreads over the last three years. Last week, the spread ballooned to 21.25 cents. Over the last three years, the average spread during February has been 5.2 cents.

The spread did go up to 12.75 cents in mid-February last year, but it had fallen to 7.5 cents by the end of the month. This year, the spread was expanding toward the end of February. Obviously, something unusual is happening for the spread to be about four times the three-year average.

It is not clear why such weakness has developed in Conway, though rumor has it there is a large player closing those Conway price positions, causing downward price pressure. That theory is backed somewhat by the fact that the spread between March Mont Belvieu and Conway is around 8 cents.

If a retailer buys supply based on Conway prices believing this pressure is an anomaly, it might be beneficial to get quotes for future price protection. The weakness in Conway pricing may carry through to March and beyond. However, the current pullback appears to be giving a good opportunity to get that first piece of price protection for next year.

Call Cost Management Solutions today for more information about how Client Services can enhance your business at (888) 441-3338 or drop us an email at

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