Inventory grows as supply outpaces demand
April 15, 2019 By Mark Rachal
April is when we make the transition from monitoring heating-degree days and the impact of winter weather to…
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April is when we make the transition from monitoring heating-degree days and the impact of winter weather to…
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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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U.S. propane inventory increased very lightly last week. Find out why.
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This year, domestic demand has remained high due to a long winter heating season, when compared to recent winters.
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Last Wednesday the EIA reported that U.S. propane inventory stood at 35.872 million barrels for the week ending April 13.
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Propane’s relative value to West Texas Intermediate crude is already slightly below the low end of the range we expected for this summer.
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Last week, the U.S. Energy Information Administration reported U.S. propane inventory had fallen to 36.759 million barrels for the week ending March 16.
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U.S. propane production from natural gas processing plants jumped in October 2017, according to the latest data from the U.S. Energy Information Administration.
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The EIA says these new measures, established in response to industry and stakeholder concerns, should provide additional information so propane dealers and customers can plan adequately.
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U.S. propane retailers got an early Christmas present when the EIA reported a surprise 1.316-million-barrel build in U.S. propane inventory.
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