Reconsider: Is it a good time to buy propane?
September 9, 2024 By Mark Rachal
Every propane retailer has asked someone or something at one point or another if it is a good time to buy propane.
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Every propane retailer has asked someone or something at one point or another if it is a good time to buy propane.
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It would be wise for propane buyers to expand the time frame in which they obtain price protection beyond one year.
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Compared to the same time period last summer, rail-car volumes from Canada were about 50 percent lower immediately after the lockout ended, NPGA says.
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In this week’s Trader’s Corner, Mark Rachal covers propane export and import data to contextualize the impact of the Canadian rail strikes.
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For the week ending Aug. 9, the U.S. Energy Information Administration reported U.S. propane inventories exceeded the 90-million-barrel mark.
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Mark Rachal explains why retailers might consider propane price protection to shield customers from price fluctuations this winter.
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The buy window for propane has opened again for the first time since the end of May.
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The summer months are usually the buying season for propane retailers trying to get price protection against higher prices for the upcoming winter, but propane retailers willing to plan further out can get ahead of the curve.
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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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