US Propane Prices Stabilize Amid Middle East Conflict

The ongoing conflict in the Middle East has led to increased volatility in energy markets for 2026. While oil prices have surged from $65 per barrel to almost $120, propane prices in the US have seen a relatively tame reaction.

J.D. Buss, president of Westlark Advisors, attributes this to the US's infrastructure, which has allowed it to increase exports and mitigate price increases.

The conflict has caused a shortage of liquefied petroleum gas (LPG) supply in Asia, leading countries such as India and Bangladesh to seek alternative suppliers. The US has stepped in to fill this gap, but its export capacity is still limited.

Buss estimates that if the US had an additional 2 million barrels per day of export capacity, it would have led to a significant deficit in US inventory levels and potentially higher prices for propane.