After last winter’s concerns over propane shortages supplies of propane in recent weeks have increased above last year’s level. In a report published by the U.S. Energy Information Administration, Midwestern propane inventories for the week ending August 8th were at 23.4 million barrels, 1.9 million barrels higher than last year, but still 1.6 million barrels below the five-year average. The high-demand season is still some months away. Midwest propane inventories have an annual cycle, with builds occurring from April through September, in advance of the harvest and heating seasons, followed by draws in October through March.
Higher prices at the Midwest propane storage hub in Conway, Kansas, have spurred the strong inventory builds in recent weeks Last winter, high propane prices, low inventories and logistical and infrastructure challenges prompted emergency measures to address propane supply shortfalls in the Midwest.