U.S. inventories of propane have reached the highest level in 22 years, spanning the reach of data collected by the Energy Information Administration. U.S. inventories of propane and propylene reached 97.7 million barrels earlier this month. Propane saw a record price jump just two years ago when inventories and shipping problems hampered the industry. Propane is primarily used in agriculture for grain drying and for livestock building heating. The Rural Lifestyle Dealer reports that as the production of propane has grown, the ability to transport, store, and export the commodity has expanded.
EIA’s September Short-Term Energy Outlook expects propane and propylene inventories to begin the October heating season at record levels, reaching a high of 99.1 million barrels at the end of September. The EIA will release its complete winter fuels outlook next Tuesday.