Propane spot prices at the Mont Belvieu distribution hub in Texas bottomed below the $1.1-per-gallon mark, down more than 30% from their March peak amid soaring domestic inventories, while declining crude prices added further pressure on the market. Meanwhile, US propane exports continued to increase due to robust global demand, particularly from Europe, amid a shift in energy supply following Russia’s invasion of Ukraine. Still, the big picture is that the highly seasonal propane market will enjoy some upside momentum when inventories start to draw down to meet winter demand.
Historically, Propane reached an all time high of 1.67 in February of 2014. Propane - data, forecasts, historical chart - was last updated on August of 2022.
Propane is expected to trade at 1.12 USD/GAL by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate it to trade at 1.23 in 12 months time.