Last winter’s high propane prices were caused by lower inventories, high demand and transportation to get it to the Midwest. Due to the severity of the problem close attention is being paid to inventories now. T. Mason Hamilton is one of those watching. He is an analyst with the U-S Energy Information Administration and says this is the key time period to be watching supplies.
The latest inventory report shows 23.4-million barrels compared to 21.5-million this time one year ago. The bad news is that is 1.6-million barrels under the five year average.
Hamilton says where we go from here depends a lot on the weather. He says in 2013 there was a record corn crop and a lot of propane was used to dry wet corn. He says shortly after came record cold temperatures and the demand for propane skyrocketed. He says some of the high costs propane users saw last year were due to emergency measures to get propane from other areas to meet the demand.