Texas Propane Prices Drop – December 19, 2023

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Reuters – The article discusses the recent trends in propane prices and inventory levels, specifically at the Mont Belvieu hub in Texas. Here, propane prices dipped below $0.7 per gallon. This decline in prices is attributed to unusually high inventory levels. Data from the Energy Information Administration (EIA) reveals that U.S. propane inventories soared to 97 million barrels as of December 1st, up from 89.7 million barrels the previous year. This increase indicates that production is outstripping demand. During this period, field production of propane reached 2.633 million barrels, while exports were slightly lower at 2.006 million barrels. Additionally, it’s noteworthy that the U.S. has emerged as a key supplier of propane to regions like East Asia, Latin America, and, to a smaller extent, Europe.

In conclusion, while the surge in propane inventories and the consequent drop in prices might seem unfavorable in the short term, especially for producers, it could be seen as beneficial for the economy in a broader sense. Lower prices could lead to increased usage and exports, potentially stimulating economic activity.

Propane Prices Chart

Propane Prices Chart