The logic behind managing propane price risk
April 6, 2021 By Mark Rachal
Propane retailers should use all of the market knowledge and risk management tools available to lower supply cost, says Mark Rachal of CMS.
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Propane retailers should use all of the market knowledge and risk management tools available to lower supply cost, says Mark Rachal of CMS.
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Two propane supply trends could warrant some caution about buying propane for next winter, says Mark Rachal of Cost Management Solutions.
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Biting off a little 80-cent propane for next winter might not taste as bitter as we imagine, says Mark Rachal of Cost Management Solutions.
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Lower domestic crude production impacts the amount of propane coming from natural gas processing, says Mark Rachal of Cost Management Solutions.
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Along with tighter propane fundamental trends, crude trends point toward a higher price environment ahead, says Mark Rachal of Cost Management Solutions.
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The Midwest has been oversupplied and low-valued long enough that it lacks investment to meet needs in high-demand periods, says Mark Rachal.
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Despite the effects of the coronavirus pandemic, U.S. demand for petroleum products is recovering. Supply, however, is not.
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U.S. domestic demand for propane increased a whopping 714,000 barrels per day (bpd) during the fifth week of the year to 2.204 million bpd.
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If we can pluck good news from propane prices, it would be that next winter’s prices are much lower than the current prices.
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Days of supply measures available inventory to demand. As long as days of supply are trending lower, prices are certainly going to feel upward pressure.
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