Part IV: Evaluating the state of crude prices
July 31, 2023 By Mark Rachal
Mark Rachal, director of research and publications with Cost Management Solutions, continues to evaluate the current state of crude prices.
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Mark Rachal, director of research and publications with Cost Management Solutions, continues to evaluate the current state of crude prices.
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Mark Rachal, director of research and publications with Cost Management Solutions, continues to evaluate the current state of crude prices.
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The growing strength in crude’s price is a threat to propane retailers trying to hedge against higher prices this winter.
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If crude prices stay where they are or trend higher, it won’t take much improvement in the propane fundamental picture to see a rapid rise in propane’s price.
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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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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. propane production has been on the rise over the past few weeks, putting a lid on propane…
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Inventory builds were late in starting this year, and now that they have, last week’s data showed they can be lighter than normal.
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The oversupply in crude is leading to reduced propane supply, which is causing the value of the two commodities to separate.
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The price of crude has rebounded a little since, but the potential for it to go lower is still present due to demand destruction from COVID-19 and producers not cooperating to limit production.
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