Propane inventories added nearly two million barrels in the last week but are still nearly 10 million barrels short of last year’s domestic stocks.
Figures released Wednesday by the Energy Information Administration show propane stocks ended last week at 30.5 million barrels. That was an increase of 1.7 million barrels on the previous week. There is now 34.5 days’ supply of propane in storage – 4.5 days more than a week ago. At the same time a year ago, however, the US had 43.8 days of propane supply in hand.
Production of propane has been hitting record levels and now that temperatures are warming and people are using less gas to heat their homes, stocks are beginning to build.
The build in off-season inventories has been slower than last year because of a cold spring and strong overseas demand for the gas. This has pushed up exports and kept stocks relatively low.
However, this week’s sizeable jump in propane inventories may indicate demand is waning – despite the on-set of the grilling season when propane-burning barbecues will fire up around the country.
The Midwest region added the largest build last week – 0.9 million barrels. The East Coast region and Gulf Coast region increased by 0.4 million barrels and 0.3 million barrels respectively, while the Rocky Mountain/West Coast regional stocks grew by 0.1 million barrels.