U.S. propane supply, export imbalance weighs on prices
March 26, 2019 By Mark Rachal
In this week’s Trader’s Corner, we revisit a topic that we have discussed numerous times this year: the…
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In this week’s Trader’s Corner, we revisit a topic that we have discussed numerous times this year: the…
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Propane’s relative value to WTI crude has been falling this year. Comparing propane’s value to crude’s value is…
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High rates of propane production, high inventory levels and relatively soft growth in propane exports have created a bearish fundamental situation for propane that could continue beyond winter.
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For the week ending July 27, propane exports were up 143,000 barrels per day from the previous week.
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Understanding the ebb and flow of propane exports is vital for propane retailers.
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In July, U.S. propane exports kicked into higher gear.
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Mariner East 1 pipeline came back online and propane exports to Asian countries were on the rise in 2017.
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U.S. propane production is much higher than domestic propane demand, leaving propane exports to play the role of balancing U.S. supply with demand.
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Change has been in the works for several years now as the U.S. propane market has become a net exporter of propane.
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A report from the U.S. Energy Information Administration (EIA) examines U.S. propane’s relationship with world propane prices and crude oil prices.
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