U.S. propane stocks are at the upper level of the previous five-year range (2019-2023), according to an Nov. 21 report published by the U.S. Energy Information Administration. U.S. propane stocks were recorded at 100 million barrels at the end of the week of Nov. 1,2024, around 11 percent higher than the previous five-year average.

Propane stocks are a reflection of the demand and supply fundamentals in the market. Propane stocks remained above the previous five-year average for the majority of the storage injection period during 2024, which usually runs from April through until October. U.S. propane stocks increased 94 percent since the start of the storage injection season this year, compared to around 77 percent last year. Propane stocks also remained above the previous five-year range (2018–2022) for most of the storage injection season last year.

The Midwest is beginning the winter heating period, which runs from November up until March, with 29 million barrels in propane stock, up by around 12 percent compared to the previous five-year average and eight percent higher than last year.  The region has the highest propane demand for space heating, and the agency estimates that 83 percent of propane usage is for space heating, while the remaining 17 percent is utilized for non-heating demand, such as grain drying demand.

The Gulf Coast has around 70 percent of total U.S. propane storage capacity, and is the region where petrochemical consumption and exports are at their highest. As of the week ending Nov. 1, propane stocks on the Gulf Coast were recorded at 57 million barrels, up 12 percent compared to the previous five-year average.

On an average basis U.S. propane exports have been at record levels so far this year and the agency projects exports to remain high through the remainder of the year and into 2025. U.S. propane exports have been further boosted, due to robust global demand for propane because of its growing utilization as a petrochemical feedstock.