U.S. propane inventories are well stocked heading into the winter heating season
<div class=\"default-font-wrapper\" style=\"line-height: 1;font-size: 12pt; font-family: Verdana, Geneva, sans-serif;\"><span id=\"isPasted\" style=\"box-sizing: border-box; text-transform: uppercase; color: rgb(89, 89, 89); display: block; font-family: Verdana, Geneva, sans-serif; font-size: 12pt; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\">November 21, 2024</span><p data-type=\"inbrief\" style=\"box-sizing: border-box; margin: 0px 0px 1em; line-height: 1.6; color: rgb(0, 0, 0); font-family: Jost, sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\"><img src=\"https://download.qtmarketcenter.com/jay/1732194475754.png\" alt=\"U.S. propane inventories\" style=\"box-sizing: border-box; border-style: none; max-width: 100%; width: 914.034px;\" class=\"fr-fic fr-dii fr-fil\" success=\"true\" filename=\"1732194475754.png\"></span></p><div style=\"box-sizing: border-box; margin: 0.5em 0em; padding: 0px; font-style: normal; font-size: 0.875rem; color: rgb(0, 0, 0); font-family: Jost, sans-serif; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"box-sizing: border-box; font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\"><strong style=\"box-sizing: border-box;\">Data source: </strong>U.S. Energy Information Administration, <a href=\"https://ir.eia.gov/wpsr/psw06.xls\" style=\"box-sizing: border-box; background-color: transparent; color: rgb(0, 126, 181); text-decoration: none;\"><em style=\"box-sizing: border-box; font-style: italic;\">Weekly Petroleum Status Report</em></a></span></div><hr style=\"box-sizing: border-box; border-top: 1px dashed rgb(212, 212, 212); border-right: none; border-bottom: none; border-left: none; border-image: initial; margin: 1.5em 0em !important; background: none; clear: both; color: rgb(212, 212, 212); float: none; height: 1px; overflow: visible; width: 914.034px; font-family: Jost, sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><p style=\"box-sizing: border-box; margin: 0px 0px 1em; line-height: 1.6; color: rgb(0, 0, 0); font-family: Jost, sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">The United States is well stocked with propane heading into the winter heating season, which runs from November through March, with U.S. propane inventories at the top of the five-year range spanning the winter of 2019–20 to the winter of 2023–24.</span></p><p style=\"box-sizing: border-box; margin: 0px 0px 1em; line-height: 1.6; color: rgb(0, 0, 0); font-family: Jost, sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">U.S. propane inventories totaled 103 million barrels at the end of the week of October 11, 2024, the <a href=\"https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WPRSTUS1&f=W\" style=\"box-sizing: border-box; background-color: transparent; color: rgb(0, 126, 181); text-decoration: none;\">most since we began collecting weekly propane inventories</a> in 2015. In the week ending November 1, 2024, inventories decreased to slightly more than 100 million barrels, about 11% more than the five-year average.</span></p><p style=\"box-sizing: border-box; margin: 0px 0px 1em; line-height: 1.6; color: rgb(0, 0, 0); font-family: Jost, sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">Propane inventories reflect supply and demand balances. The U.S. propane storage injection season typically runs from April through October, followed by a withdrawal season during the winter. Propane inventories remained above the previous five-year average for most of the storage injection season this year. U.S. propane inventories grew 94% since the start of the storage injection season (the week ending April 5, 2024). Last year, propane inventories grew 77% from the first week of April to 98 million barrels for the week ending November 3, 2023.</span></p><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\"><img src=\"https://download.qtmarketcenter.com/jay/1732194476786.png\" alt=\"U.S. propane inventories by region\" style=\"box-sizing: border-box; border-style: none; max-width: 100%; width: 914.034px; color: rgb(0, 0, 0); font-family: Jost, sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\" class=\"fr-fic fr-dii fr-fil\" success=\"true\" filename=\"1732194476786.png\"></span><div style=\"box-sizing: border-box; margin: 0.5em 0em; padding: 0px; font-style: normal; font-size: 0.875rem; color: rgb(0, 0, 0); font-family: Jost, sans-serif; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"box-sizing: border-box; font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\"><strong style=\"box-sizing: border-box;\">Data source: </strong>U.S. Energy Information Administration, <a href=\"https://ir.eia.gov/wpsr/psw06.xls\" style=\"box-sizing: border-box; background-color: transparent; color: rgb(0, 126, 181); text-decoration: none;\"><em style=\"box-sizing: border-box; font-style: italic;\">Weekly Petroleum Status Report</em></a></span></div><hr style=\"box-sizing: border-box; border-top: 1px dashed rgb(212, 212, 212); border-right: none; border-bottom: none; border-left: none; border-image: initial; margin: 1.5em 0em !important; background: none; clear: both; color: rgb(212, 212, 212); float: none; height: 1px; overflow: visible; width: 914.034px; font-family: Jost, sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><p style=\"box-sizing: border-box; margin: 0px 0px 1em; line-height: 1.6; color: rgb(0, 0, 0); font-family: Jost, sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">The Midwest (PADD 2) is starting the winter heating season with 29 million barrels in propane inventories, about 12% more than the five-year average and 8% more than last year. The Midwest is the U.S. region with the greatest propane demand for space heating, accounting for about one-third of the 6.6 million U.S. households that <a href=\"https://www.eia.gov/outlooks/steo/report/perspectives/2024/10-winterfuels/article.php#casetab3\" style=\"box-sizing: border-box; background-color: transparent; color: rgb(0, 126, 181); text-decoration: none;\">reported using propane</a> as a primary space heating fuel in 2024. We estimate that 83% of propane consumption is for space heating in the Midwest, while the remaining 17% is used for non-heating demand.</span></p><p style=\"box-sizing: border-box; margin: 0px 0px 1em; line-height: 1.6; color: rgb(0, 0, 0); font-family: Jost, sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">Non-heating demand includes <a href=\"https://www.eia.gov/naturalgas/weekly/archivenew_ngwu/2021/08_19/#itn-tabs-1\" style=\"box-sizing: border-box; background-color: transparent; color: rgb(0, 126, 181); text-decoration: none;\">grain-drying demand</a>, which can significantly affect propane inventories in the Midwest. About 90% of the <a href=\"https://downloads.usda.library.cornell.edu/usda-esmis/files/tm70mv177/bz60fp33t/d791v920m/crop1124.pdf\" style=\"box-sizing: border-box; background-color: transparent; color: rgb(0, 126, 181); text-decoration: none;\">U.S. corn crop</a> is grown in the Midwest. If crops mature at the end of October or later or have a high moisture content at harvest, producers use grain dryers powered primarily by natural gas or propane to dry the grain enough to make it marketable. This year’s corn crops <a href=\"https://downloads.usda.library.cornell.edu/usda-esmis/files/8336h188j/x633gv10w/t722k355x/prog4424.pdf\" style=\"box-sizing: border-box; background-color: transparent; color: rgb(0, 126, 181); text-decoration: none;\">were harvested much earlier than on average from 2019 to 2023</a>, reducing propane demand for grain-drying. As a result, Midwest propane inventories are well above the five-year average and <a href=\"https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=PET&s=WPRSTP21&f=W\" style=\"box-sizing: border-box; background-color: transparent; color: rgb(0, 126, 181); text-decoration: none;\">five-year range</a>.</span></p><p style=\"box-sizing: border-box; margin: 0px 0px 1em; line-height: 1.6; color: rgb(0, 0, 0); font-family: Jost, sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">The Gulf Coast, where most petrochemicals are consumed and most propane is exported from, has about 70% of <a href=\"https://www.eia.gov/dnav/pet/pet_stoc_typ_d_nus_SAE_mbbl_m.htm\" style=\"box-sizing: border-box; background-color: transparent; color: rgb(0, 126, 181); text-decoration: none;\">U.S. propane storage capacity</a>. Propane inventories on the Gulf Coast totaled 57 million barrels for the week ending November 1, about 12% more than the five-year average.</span></p><p style=\"box-sizing: border-box; margin: 0px 0px 1em; line-height: 1.6; color: rgb(0, 0, 0); font-family: Jost, sans-serif; font-size: 16px; font-style: normal; font-variant-ligatures: normal; font-variant-caps: normal; font-weight: 400; letter-spacing: normal; orphans: 2; text-align: start; text-indent: 0px; text-transform: none; widows: 2; word-spacing: 0px; -webkit-text-stroke-width: 0px; white-space: normal; text-decoration-thickness: initial; text-decoration-style: initial; text-decoration-color: initial;\"><span style=\"font-family: Verdana, Geneva, sans-serif; font-size: 12pt;\">Global demand for propane has increased because of its growing <a href=\"https://www.eia.gov/petroleum/weekly/archive/2021/210203/includes/analysis_print.php\" style=\"box-sizing: border-box; background-color: transparent; color: rgb(0, 126, 181); text-decoration: none;\">use as a petrochemical feedstock</a>. U.S. propane exports to Asia have grown rapidly as consumption of propane as a petrochemical feedstock has increased in recent years. U.S. propane exports on average have been at <a href=\"https://www.eia.gov/dnav/pet/hist/LeafHandler.ashx?n=pet&s=w_epllpz_eex_nus-z00_mbbld&f=4\" style=\"box-sizing: border-box; background-color: transparent; color: rgb(0, 126, 181); text-decoration: none;\">record highs so far in 2024</a>, and <a href=\"https://www.eia.gov/outlooks/steo/data/browser/#/?v=0&f=M&s=00000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000040000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000000&start=201901&end=202512&map=&linechart=PRNIPUS&ctype=linechart&maptype=0\" style=\"box-sizing: border-box; background-color: transparent; color: rgb(0, 126, 181); text-decoration: none;\">we expect them to stay elevated</a> through the rest of this year and into 2025.</span></p></div>