Propane inventory just keeps building
November 29, 2022 By Mark Rachal
Inventory is 9.7 percent above its five-year average. We have only seen inventory higher than this four times in the past 19 years, says Mark Rachal of CMS.
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Inventory is 9.7 percent above its five-year average. We have only seen inventory higher than this four times in the past 19 years, says Mark Rachal of CMS.
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It’s time to prepare for the winter heating season as it relates to propane supply and logistics. Editor-in-chief Brian Richesson shares some key points.
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Propane was the most-exported U.S. petroleum product in the first half of 2022 by volume, continuing a trend that started in 2020, according to the U.S. Energy Information Administration.
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In addition to the weather, propane marketers now must consider how energy market movements owing to the war in Ukraine could impact their operations.
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In this week’s Trader’s Corner, Mark Rachal of Cost Management Solutions reviews propane demand and pricing thus far in 2022.
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EIA says a mild start to the winter heating season caused U.S. propane prices to decline from their highest starting price level for a heating season since 2014.
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This week’s data suggests export reporting got back on track, but we still need to monitor for the possibility of an increase in overall demand.
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For the week ending Dec. 10, U.S. propane exports dropped to 847,000 barrels per day (bpd) – 509,000 bpd less than the same week last year.
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A number of industry sources have weighed in on winter preparation, positive developments and still the potential for supply-and-distribution disruptions.
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