Conway propane continued to slide on Tuesday morning as the market corrects from all-time high levels, sources said.
Conway propane was heard trading at $2.25/gal, which was 65 cents lower from Monday's assessment.
"I think we had a tad of fear in the market last week," a Gulf Coast trader said.
Conway propane hit a record high of $4.95/gal on Thursday as a tight Conway market saw a strong demand pull from cold weather.
Enterprise was heard to have taken a portion of its MAPL pipeline off allocation until early February to help move more barrels into low-supplied markets in the Midcontinent.
However, the downward move in propane was counter to that development.
"Usually it's bullish ... customers can buy marketing center barrels to take up the line," a trader said. "When on allocation [there is] less of a need to buy marketing center barrels because you can't take as much up the line."
The market is preparing for another stock report from the US Energy Information Administration on Wednesday that could show that propane stocks fell as much as 1.4 million barrels in the Midcontinent last week, sources said.
A stock draw of that magnitude would take Midcontinent propane stocks to an all-time low for the fourth week of January, EIA data showed.
