A forecast for a colder winter than last year is expected to drive up U.S. propane consumption, according to a federal outlook.

U.S. Propane Consumption

That would bode well for propane, given that about two-thirds of the natural gas byproduct is consumed during the winter months. An estimated 5% of U.S. homes use propane as their primary heating fuel, the U.S. Energy Information Administration (EIA) said in its latest Short-Term Energy Outlook.

EIA expects 5% more U.S. propane consumption this winter when compared with last winter, with cooler temperatures driving up residential space heating and, in doing so, prices. The agency said it also continues to expect more Americans will be working or attending school from home this winter because of the ongoing coronavirus pandemic, pushing up residential...