Propane Spot Prices Drift Lower as Heating Demand Evaporates

Inventory Overhang

U.S. propane stocks are currently 12% above the five-year average. With the peak heating window closed, the market is now entirely dependent on petrochemical demand and export volume to clear the supply surplus.

Petrochemical Feedstock Shift

Cheap propane is attracting significant interest from global crackers. The current discount to naphtha is wide enough to encourage maximum propane cracking, which is the only factor preventing a deeper price collapse.