Propane Comments from EIA - This Week In Petroluem

Propane Inventories Continue Much Lower
Primary supplies of propane continued their sharp descent last week, falling by 3.1 millions barrels to an estimated 47.5 million barrels as of January 23, 2009. Nevertheless, propane inventories remain more than 5 million barrels ahead of the same period last year despite the recent surge of winter storms across a wide swath of the country. The Midwest led regional declines with 1.5 million barrels last week, while the Gulf Coast reported the next largest drop with a 1.2 million-barrel decline. The East Coast and the combined Rocky Mountain regions showed similar declines of 0.2 million barrels during this same time. 

From this point, the equation is very simple: 

Cold Winter Weather = Bad Supply Problems 

Moderate Winter Weather = Supply Problems - especially in the Northeast

Above Average Temps = A chance to catch our collective breath