Midwest propane supplies are tight heading into peak winter demand months (12/18/2019)

Propane inventories in the Midwest totaled 20 million barrels as of December 13, or 4.7 million barrels (19%) below the previous five-year (2014-18) average. Lower-than-average propane inventories were driven by both higher consumption and lower supply. A late and wet corn harvest in the Midwest resulted in increased agricultural propane demand, while supply of propane was lower because of disruptions to rail shipments from Canada. This situation is similar to the events of winter 2013-14 when extremely tight propane supplies in the Midwest led to record-level spot and retail prices. ... More »