Propane Spot Prices Slip as Warm Winter Dampens Heating Draws

Residential vs. Spot

While retail residential prices remain higher (averaging $2.53), the wholesale spot market is well-supplied. High processing rates for natural gas liquids (NGLs) in the Permian Basin have ensured that the US enters 2026 with a massive inventory cushion.

Petrochemical Feedstock Utility

Propane continues to be the most competitive feedstock for petrochemical crackers in Asia and Europe. This export demand is acting as the primary price floor, preventing spot prices from collapsing further despite the lack of aggressive domestic heating draws.