Propane Spot Prices Slip as Milder Winter Patterns Ease Storage Draws

Mont Belvieu Inventory Levels

Propane stocks at the Mont Belvieu hub remain significantly higher than their five-year average. The record high processing of natural gas liquids (NGLs) has ensured that the US enters the coldest part of the year with a massive inventory cushion, preventing the price spikes often seen in previous winters.

Petrochemical Demand Floor

While heating demand is weak, the export and petrochemical sectors are providing a floor for propane. US propane is currently the cheapest feedstock for global plastics production, leading to record-high export loadings out of the Gulf Coast that are helping to clear the domestic surplus.