Summary
The major propane benchmarks were ultimately supported in the fortnight ending 26 Mar as we saw increasing strength in crude oil prices. The Apr’25 C3 LST initially traded sideways in the week to 18 Mar, rising from about 80.50c/gal on 12 Mar to 82.35c/gal on 18 Mar and slipping back to 80.55c/gal by the morning of 19 Mar. However, this week the contract has surged, hitting 89.25c/gal as of 26 Mar—a level that previously acted as resistance for the M1 contract on 28 Feb. Open interest in Apr’25 C3 LST has now dropped below the five-year high, falling from 38.4mb on 18 Mar to 34.5mb by 24 Mar. Counterparty flows were mixed in the past week with a slight sell-side skew, with majors/NOCs buying 1.3mb and trade houses selling 1.8mb against Onyx.
