During October 2021, the wholesale propane price at Mont Belvieu was the highest since February 2014. Propane prices have fallen since October 2021 because warmer-than-normal weather in October through December resulted in less propane consumption for space heating in the residential and commercial sectors.
Trends in international markets have also influenced US propane exports and wholesale propane prices. During the first 11 months of 2021 (the most recent monthly data available), US propane exports averaged 1.3 million bbl/d, the highest export level for the first 11 months of any year since 2004, when we began tracking propane exports.
Global demand for propane has risen because of its increased use as a petrochemical feedstock. Propane can be processed into various plastic and resin products. Global demand for US propane has remained steady despite higher US prices because international prices for propane and other feedstocks have also increased.
