US Midwest sees surging propane costs as Gulf Coast supply heads overseas
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The latest US inflation data showed energy costs jumping 30% in the 12 months through October. The trend is expected to continue through the winter, as home-heating costs rise across the board. The US Energy Information Administration predicts propane will see the biggest price spike in percentage terms, with heating costs surging 46%, compared with 39% for heating oil, 29% for natural gas and 6% for electricity. Senior editor Meghan Gordon spoke with Andrew Neal, manager of global NGLs for S&P Global Platts Analytics, about some of the dynamics behind the higher prices. They talked about strong global demand for US propane exports, the Enbridge Line 5 pipeline controversy in Michigan, and calls by some in Washington to limit US energy exports in the face of high domestic prices. Stick around after the interview for Jeff Mower with the Market Minute, a look at near-term oil market drivers.
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Published 12/27/21