February 10, 2021 – Wall Street Journal
Americans Heating Outdoor Spaces Have Fired Up Propane Prices
By Ryan Dezember
Seven winters ago, during a similarly frigid spell, propane prices shot up to nearly $5 a gallon at the Conway, Kan., trading hub, which serves the region where below-zero temperatures are expected. Back then, in the winter that straddled 2013 and 2014, a lot of the supply had been used to dry a bumper crop of corn just ahead of a cold front.
Supplies aren’t so depleted this year, and a lot of propane headed overseas can be held back for domestic use, said Rusty Braziel, CEO of consultancy RBN Energy LLC. Still, prices could pop if the freezing weather drags on.
Unlike natural gas, which moves around the country in pipelines, propane often reaches consumers by truck. Several states, including Ohio, Maryland and Pennsylvania, have in recent days lifted restrictions on how many hours truck drivers can be on the road so that propane can reach households during the big freeze.
“We think most of the industry is prepared for a supply-chain disruption of a week or two,” Mr. Braziel said. “But forecasts are showing sustained cold in the Midwest through the end of the month. That could be a problem.”
Read the full article here: https://www.wsj.com/articles/americans-heating-outdoor-spaces-have-fired-up-propane-prices-11612962000
