Written on: February 27, 2023
Overall U.S. propane stood at 63mmbbls as of February 17, 2023. This was much stronger than the inventory level at the end of February 2022, only 38mmbbls, and at the end of February 2021, only 43.5mmbbls. Certainly, many of the fears about strong demand in the U.S. and problems that could have arisen due to the war in Ukraine abated as shortages simply never materialized.
On Monday, February 27, propane traded at 81 cpg at Mt. Belvieu, TX and 78 cpg at Conway, KS. These price points were a low 45% of crude oil. Overall retail prices, averaged lower than this week last year. Retail prices averaged $2.70 last week, down from $2.89 this week a year ago. On the East Coast (PADD 1), retail prices averaged $3.40 last week, down from $3.61 a year ago. In the Midwest (PADD 2), retail propane averaged $2.30, down from $2.52 a year ago. The Gulf Coast (PADD 3) retail price averaged $2.96 last week, down from $3.01 a year ago. The Rocky Mountain area (PADD 4) retail price was $2.56 last week, down from $2.61 a year ago.