Propane buyers interested in getting protection against higher prices this winter have been hoping the recent run-up in propane prices would reverse itself and give them an opportunity to obtain that protection at a more favorable price.
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Improving the inventory position on the Gulf Coast will bring relief to propane markets and perhaps take some of the pressure off propane prices.
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The U.S. Energy Information Administration began forecasting spot prices at Mont Belvieu with its September Short-Term Energy Outlook.
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The residential price of propane was slightly above the previous five-year average to start the winter heating season, but its price has remained flat since.
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Each month, LP Gas provides updates on the U.S. propane market, as well as the latest trends. The data for July 2022 highlights the U.S. corn crop progress.
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The data for June 2022 highlights the truck driver shortage in the U.S. and the number of new drivers needed in the future.
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Data for May 2022 focuses on U.S. petroleum product exports and imports from 2016 to 2021.
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As propane inventory rises, prices tend to fall, and as inventory falls, prices tend to rise. But we also noted some exceptions.
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Propane inventory positions are a reflection of all underlying fundamental conditions, such as production, imports, exports and domestic demand.
Read More Mariner East 1 pipeline came back online and propane exports to Asian countries were on the rise in 2017.
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