February brings arctic air and red-hot propane demand
February 16, 2021 By Mark Rachal
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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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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Since last week’s Trader’s Corner, there was a dramatic change in U.S. propane prices. The change began after the Martin Luther King Jr. Day holiday.
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The quick gains in propane prices like those experienced this past week can have an immediate impact on a retail company’s bottom line.
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As long as export demand remains strong, there is likely to be continued pressure on inventory and thus support for propane prices.
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Despite ample inventories, U.S. propane prices have appreciated markedly this winter, with most of the gain coming in the last few weeks.
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It has been a curious year to watch the build in Canadian propane inventory. Mark Rachal offers a look at why producers are slowing exports to the U.S.
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The retail propane community was once a prominent component of the overall domestic demand picture, but the shale boom created other demand options.
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Mark Rachal of Cost Management Solutions takes a close look at propane inventory trends ahead of peak demand season.
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