Propane Weakens to Multi Week Lows Due to Milder Winter Forecasts

Delayed Heating Demand

The market is driven almost entirely by weather. The lack of a major cold snap means residential heating demand has yet to accelerate, leading to insufficient storage draws. Distributors are well-stocked, and the urgency to buy spot cargoes has disappeared, forcing prices lower.

Export Market Stability

Despite the domestic slump, strong export demand for propane, primarily to Asian petrochemical producers, provides a firm price floor. This steady export off-take prevents the domestic supply glut from becoming overwhelming, mitigating the overall downward pressure.

Inventory and Production

US propane inventories are adequate for this time of year, reinforcing the bearish outlook unless a sustained deep freeze occurs. Production remains robust, ensuring the market can easily meet current demand levels without major price volatility.