Speculative bulls contribute to crude selloff
March 13, 2017 By Mark Rachal and Dale Delay
Since Feb. 23, West Texas Intermediate crude has been in a downward price trend.
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Since Feb. 23, West Texas Intermediate crude has been in a downward price trend.
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The growth in propane supply has been extraordinary, especially from 2012 to 2015. However, the growth in supply has slowed dramatically.
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Propane prices have been on a decline throughout most of February, and that decline has shown little sign of abating. Has the price correction gone too far?
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The U.S. Energy Information Administration showed a 9.527-million-barrel build in U.S. crude inventory for the week ending Feb. 10.
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It’s difficult to pinpoint the cause of the two-day runup in prices that eventually turned into a sharp sell-off. Cost Management Solutions examines the change.
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United States crude production increased 17,000 bpd last week. That put total U.S. production at 8.961 million bpd.
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The inventory draws in January and for the week ending Jan. 13 make it almost a certainty inventory will end this winter at its lowest point in three years.
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U.S. propane inventory ended 2016 at 84.123 million barrels after dropping 2.746 million barrels in the final week of the year.
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Propane prices have been on a strong uptrend over the past year as fundamental conditions improve.
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The price difference between the Mont Belvieu and Conway has tightened considerably over the last month and a half.
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