Shale boom pulls U.S. propane prices down

01/9/2013 | Platts

The surge in U.S. shale energy production has started to pull propane prices down because of excessive supply. The commodity's price difference with natural gas has reached its narrowest level in two years. A "near-record mild 2011-2012 winter and the sharp increase in NGL-targeted drilling has led to very high propane storage levels and more than a 50% contraction in the NGL-to-Henry Hub price ratio," market analyst Steve Smith said in a report.

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