
Propane pricing will hinge on crude production
June 23, 2020 By Mark Rachal
Producers voluntarily shut production during April, and the associated natural gas liquids loss dramatically impacted propane fundamentals.
Read MoreProducers voluntarily shut production during April, and the associated natural gas liquids loss dramatically impacted propane fundamentals.
Read MoreWhile Saudi Arabia has called an emergency meeting of OPEC+, there is little doubt that U.S. production growth is very likely to slow in the future.
Read MoreThe price of crude has rebounded a little since, but the potential for it to go lower is still present due to demand destruction from COVID-19 and producers not cooperating to limit production.
Read MoreAny forecast on propane prices begins with trying to determine where crude will be priced.
Read MoreAt this time of year, we expect refinery throughput to be lower. However, inventory has continued to fall this winter at a sharp pace.
Read MoreMajor producers, including OPEC countries and Russia, agreed to extend the production quotas implemented in January through the end of 2018.
Read MoreRecently, propane prices have not gone beyond 78 to 80 percent of West Texas Intermediate (WTI) crude’s price.
Read MoreThe Organization of the Petroleum Exporting Countries projects demand for its crude will average 32.83 million barrels per day in 2018.
Read MoreThe market has determined that production controls by producers cannot, by themselves, balance supply and demand enough to bring down global crude inventory.
Read MoreU.S. crude inventory is falling and that is helping fuel the recent uptrend in crude prices.
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