What it is
A gas that liquefies under modest pressure, obtained when natural gas is processed and crude oil is refined. It is used for heating and cooking, as a petrochemical feedstock and for drying crops.
How it is usually quoted
US cents per gallon in the United States; US dollars per tonne elsewhere.
This is the customary unit of the reference market. Other markets for the same commodity may use another unit or currency, and an exchange can change a contract’s terms: its own rulebook is the authority.
Where the reference contract trades
Priced at hubs, chiefly Mont Belvieu in Texas; futures and swaps on those prices are listed on CME and ICE.
Named for orientation only. Naming an exchange or a market here does not mean that GIO4X gives access to it.
What commonly moves it
- Winter heating demand
- Demand from petrochemical plants, which choose between propane and naphtha
- The rate of oil and gas production, since propane comes with both
- Exports from the US Gulf Coast
These are the things people who follow this market usually watch. They explain how the market works; they do not say what the price will do next.
Where it comes from
The United States is the largest producer and exporter. The Gulf states are the other main exporters.
The order of producers changes from year to year, so no quantities or shares are given here.
At GIO4X
Propane is not offered as a GIO4X instrument. This page is general education about a market that exists elsewhere, and nothing on it means that GIO4X quotes, trades or gives access to it.
The commodities GIO4X does list are Brent crude, gold, natural gas, palladium, platinum, silver and WTI crude.
Words worth knowing
A reference page. Educational information, not investment advice or a recommendation to trade. It gives no price and no forecast.