Crude drilling slowdown could support propane prices
July 30, 2018 By Mark Rachal and Dale Delay
Last week, U.S. crude production hit 11 million barrels per day for the first time ever.
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Last week, U.S. crude production hit 11 million barrels per day for the first time ever.
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Over the last year, propane has been pulled higher by rising crude prices since propane’s relative value is not keeping up with the rise in crude’s price.
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In 2017, Mont Belvieu averaged a higher price than Conway by 4.52 cents. That 4.5-cent spread is maintained because of the oversupply in the Midwest, Cost Management Solutions says.
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Export activity in July and its resulting impact on U.S. inventory builds should be very interesting to monitor.
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For the foreseeable future, it appears Conway is going to be overwhelmed by supply.
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The pricing pattern for March and May turned out to be very similar, but April was a little different.
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U.S. propane inventory increased very lightly last week. Find out why.
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Propane has certainly been bullish in the last 10 days.
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Get the scoop on end-of-winter supply news from around the country.
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Propane prices saw a significant change in April. Get more details on this shift.
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