EIA: Propane demand hits record in November

According to weekly data from the U.S. Energy Information Administration (EIA), demand for propane reached the highest level ever recorded for November. For the week ending Nov. 1, the United States consumed nearly 1.8 million barrels per day – a figure typically not seen until January or February, when the winter heating season reaches a peak. A record corn crop harvest has increased the demand for propane this year. As a result of this demand, propane inventories in the Midwest have fallen to their lowest level for November since 1996, EIA says. Along with spiking domestic demand, international demand for U.S. propane has also surged. Exports from the United States are currently estimated at 288,000 barrels per day, not far from the record of 308,000 barrels per day set this past May, EIA adds. The boost in propane demand has created a spike in propane prices across the country. The winter heating season is just beginning to affect consumption figures, so propane demand for the 2013-14 season could continue at a record pace into the spring, EIA says.