U.S. Propane Heading for “Armageddon” with High Prices, Shortages

Three weeks ago MDN told you that propane prices at both the wholesale and retail level were going through the roof (see Propane Prices Through the Roof – Global Demand Up, Supply Down). At that time wholesale prices at Mont Belvieu, Texas, the main U.S. hydrocarbon gas liquids (HGL) hub, were averaging $1.33 per gallon. It's only gotten worse. The most recent numbers show wholesale propane prices averaging $1.63 per gallon. Edgar Ang, an IHS Markit analyst, says the setup looks like it could be "propane-market armageddon" and that we could see shortages before the end of winter.

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