Average Weekly Propane Spot Prices
Source: Reuters and Oil Price Information Service
Propane spot prices at the major trading hubs remained relatively close through October 2000, but uncoupled in California as natural gas prices rose rapidly during November and early December 2000.
Although propane remains a minor heating fuel in California, refineries and some businesses switched to propane for fuel use in the wake of rapidly escalating natural gas prices.
Residential propane prices are expected to rise over the remainder of the 2000-01 heating season as continued volatility in crude oil markets and strong heating demand put upward pressure on propane prices during this period.