Propane slipped 4.1% in the past week and last touched $1 per gallon (gal) on Oct. 16. It has not averaged $1/gal for the Hart Energy Wednesday-to-Tuesday five-day tracking period since the week ending Oct. 9. Since the start of October, when it peaked at $1.08/gal, propane has tumbled 23.7%. The Mont Belvieu, Texas, margin also narrowed by 9.3% to just over 51 cents/gal.
The issue has to do with timing, EnVantage Inc. said in a recent report. With crop drying nearly done and winter heating just starting to pick up, there is not much seasonal demand. However, there is:
- A slump in oil prices;
- Higher propane production; and
- Rising inventories.