Buying propane for winter 2021-22 might be a good value
February 9, 2021 By Mark Rachal
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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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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Those of you who are regular readers of Trader’s Corner will remember that we set benchmarks on crude…
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