Don’t get exposed this winter
October 19, 2017 By Randy Warner
As we head into the coming heating season, the embarrassment of being caught “naked” on the supply side is a real concern.
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As we head into the coming heating season, the embarrassment of being caught “naked” on the supply side is a real concern.
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It has been a tough three weeks for propane inventories, as the typical period of inventory build nears its end.
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Propane prices increased after the Energy Information Administration reported U.S. propane inventory fell 1.377 million barrels for the week ending Sept. 15.
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For the week ending Sept. 1, the U.S. Energy Information Administration (EIA) reported a 6.346-million-barrel build in U.S. propane inventory.
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Propane inventory dynamics are definitely in a state of flux. At this point, traders are still trying to figure out what is the new normal.
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For the week ending July 21, the U.S. Energy Information Administration surprised markets by reporting just a 200,000-barrel build in U.S. propane inventory.
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U.S. crude and petroleum exports increased in recent years, and propane exports have accelerated significantly, the Energy Information Administration reports.
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Last week, the Energy Information Administration reported U.S. propane inventory increased 3.446 million barrels.
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Propane Resources’ Jeff Thompson provides a snapshot of the propane inventory picture going into the summer-build season.
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There was a little less nervousness last week after the EIA’s weekly inventory data finally showed a significant build in U.S. propane inventory.
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