Bearish factors undermine propane’s value
April 10, 2018 By Mark Rachal and Dale Delay
Propane’s relative value to West Texas Intermediate crude is already slightly below the low end of the range we expected for this summer.
Read MorePropane’s relative value to West Texas Intermediate crude is already slightly below the low end of the range we expected for this summer.
Read MoreCost Management Solutions’ Mark Rachal takes a look at propane’s relative value to crude and how it is trending compared with last year.
Read MoreU.S. propane prices have returned to where they began the winter – in a price decline that has surprised many, given strong domestic demand support.
Read MoreEnergy consultant and researcher Anne Keller wields her “crystal ball” for NGL forecasting.
Read MorePropane supply gets less attention than demand, but is more important in setting the pricing environment.
Read MoreMajor producers, including OPEC countries and Russia, agreed to extend the production quotas implemented in January through the end of 2018.
Read MorePropane prices often go through a bit of a slump between the middle of October and the Thanksgiving holiday.
Read MoreRelative to West Texas Intermediate’s crude price, Mont Belvieu is valued at 76 percent, while Conway is valued at 73 percent.
Read MoreRecently, propane prices have not gone beyond 78 to 80 percent of West Texas Intermediate (WTI) crude’s price.
Read MoreWTI crude is an important metric because it gives propane retailers a way to evaluate the value of the product they sell. The comparison provides needed guidance when managing the price risks associated with propane supply.
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