The US Energy Information Administration (EIA) said that spot propane prices at Mont Belvieu, Texas, stood at $1.33 per gallon in the week ended September 24, the highest weekly average since February 2014. Increased global demand and low global supply have underpinned spot propane prices since September 2020.
According to EIA, the US exported 1.3 million bpd of propane in January-June of 2021, an increase of 100,000 bpd from the first half of 2020. At the same time, US propane production and consumption have relatively been flat, which resulted in a tighter market. Exports constituted 60% of total US propane demand in H1 2021, an increase from 58% in H1 2020. US propane exports are expected to remain high through the rest of the year before gradually decline on higher OPEC+ output.
The global propane supply deficit has also boosted wholesale prices in Northwest Europe and East Asia by more than 100%. The two regions are net propane exporters who use the gas for space heating and as a petrochemical feedstock.
