Propane Markets Quiet as Milder Weather Curbs Heating Demand

Storage and Weather Outlook

The US propane inventory remains healthy heading into the heart of winter. Because gas processing has been at record highs this year, the market is starting with a significant cushion. Without a sustained deep freeze, distributors are not under pressure to buy spot volumes, keeping prices stable for the time being.

Petrochemical Feedstock Value

Propane's primary price driver currently is its value as a petrochemical feedstock rather than a heating fuel. With prices sitting near 69 cents, it remains a competitive option for plastics producers in Asia. This industrial floor is preventing the price from sliding further despite the weak domestic heating demand.