Lower petrochemical use of propane driven by wider price spread between propane and ethane

Propane demand is expected to be 110,000 barrels per day lower on average in 2014 compared to 2013 because of reduced demand from petrochemical plants, according to EIA's Short-Term Energy Outlook. In contrast to propane used as a heating fuel in buildings during colder months and as a crop-drying fuel during the harvest season, both of which are highly seasonal and weather dependent, petrochemical consumption of propane has relatively little seasonality.