Propane Prices Hover Around $0.6

Propane spot prices at the Mont Belvieu distribution hub in Texas hovered around the $0.6 per gallon mark, close to levels not seen since December 2020, amid prospects of lower demand and soaring domestic inventories.

The electrification process in the US proceeded, with more states banning furnaces and, thus, hurting the demand for commodity.

Furthermore, the latest EIA report indicated US propane consumption averaged 0.986 million barrels per day during the 2022–23 winter heating season, the least amount for such a period since records began in 2010 due to warmer-than-normal weather.

On the other hand, some respite for the market was offered by conditioning demand which is seen rising from June 14-20 on hotter temperatures.

Plus, US exports are likely to remain strong following a shift in energy supplies caused by Russia's invasion.