Propane prices are currently creating sticker shock. The Wall Street Journal reporting current future prices are roughly twice their levels during the past two summer.
The Energy Information Administration (EIA) says American households can expect to spend an average of 14%more on propane this winter than they did last year, and inflated demand means the price could go even higher if the weather is colder than forecasted.
While demand for many fuels declined last year, international demand found footing. Outbound cargoes of U.S. propane rose 13%.
Now, supply concerns are rising. Last week, the Energy Information Administration reported propane stocks were less than analysts had expected. An area that stretches from Ohio to Oklahoma and up to North Dakota is particularly low on supply. That region burns a lot of propane in the fall, when farmers use it to dry crops.
