The U.S. monthly propane-to-crude ratio has fallen to 42% so far in November (red bar in chart), with WTI crude averaging $60.20/bbl and propane at 60.15¢/gal, down from 46% in October and well below the spring peak of 56%. Although the ratio has fluctuated in recent months, the overall trend remains lower amid weak seasonal propane demand and ample inventories. Despite lower crude oil prices, the monthly average ratio is 7 percentage points below the same period last year, as strong storage builds continue to weigh on propane prices relative to crude. The direction of the ratio through winter will depend largely on weather-driven demand and export strength, which together will determine how quickly inventories draw down and whether propane prices can regain ground relative to crude.
Featured Articles
- Analyst Insight
Chart Toppers: Propane-to-Crude Ratio Increases
Propane-to-crude climbs in December — spring levels still rolling their eyes.
- Analyst Insight
Propane Continues to Lag Crude in January - Chart Toppers
Propane remains under pressure relative to crude, with the propane-to-WTI ratio averaging 43% in January.
- Analyst Insight
U.S. Propane-to-WTI Crude Ratio Falls to Multi-Month Low
The U.S. propane-to-WTI crude ratio continues to slide, averaging 35% in March—down from 40% in February and well below last spring’s highs. With crude holding strong and propane lagging, the spread has widened to a multi-month low.
