Posts by Mark Rachal

Slowing growth in production could tighten supplies Posted on 05 Jul 2016 in the Blue Flame Blog categories.

In trying to determine if propane supplies will tighten going forward, CMS has been monitoring propane production from natural gas processing plants. Read more»

How and when to use call options to manage propane supply price risk Posted on 20 Jun 2016 in the Blue Flame Blog categories.

Today’s Trader’s Corner looks at one of the staples of managing propane supply price risk: call options. Read more»

Propane’s relative value and the buying environment Posted on 13 Jun 2016 in the Blue Flame Blog categories.

Propane retailers and their customers may have been feeling the heat of higher propane prices recently. Read more»

The effects of the Gulf Coast propane inventory decline Posted on 06 Jun 2016 in the Blue Flame Blog categories.

Propane prices in the United States have fallen into a downtrend since the middle of May, reports Cost Management Solutions in the June 6 issue of Trader’s Corner. Read more»

Selling swaps provides protection against falling prices Posted on 31 May 2016 in the Blue Flame Blog categories.

As propane retailers, we consider our hard-won customers the only ones interested in buying our propane. We believe we must wait until our customers need the propane or are willing... Read more»

Edmonton propane price’s overall effect on supply, demand Posted on 23 May 2016 in the Blue Flame Blog categories.

The price discount of Edmonton propane to Conway propane is lessening as Canadian supply gets tighter. The chart shows Canadian propane inventory slightly below its five-year average. That is a... Read more»

Rising Cushing crude inventory could end crude, propane rally Posted on 16 May 2016 in the Blue Flame Blog categories.

Crude and propane prices are in the midst of a very strong run. Anytime a market has been in a strong uptrend, there is always concern that it could end... Read more»

Analyzing the sharp rise in propane production Posted on 02 May 2016 in the Blue Flame Blog categories.

A huge jump in propane/propylene production was a key factor in the well-above-normal 2.259-million-barrel inventory build reported by the Energy Information Administration for the week ending April 22. Propane production... Read more»

Inventory position differences only partly explain price-spread trend Posted on 25 Apr 2016 in the Blue Flame Blog categories.

For several weeks, the Energy information Administration has reported above-average inventory builds. However, the builds have not been evenly distributed throughout the nation. Most of the builds have come in... Read more»

Managing supply price risk ahead of next winter Posted on 18 Apr 2016 in the Blue Flame Blog categories.

Many propane retailers may find themselves in a bit of a quandary concerning managing the risk of higher propane prices this winter. On the one hand, there are reasons not... Read more»