Big drop in demand undermines propane prices
May 15, 2017 By Mark Rachal and Dale Delay
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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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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For the week ending March 31, the U.S. Energy Information Administration reported a 1.213-million-barrel draw in U.S. propane inventory.
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U.S. propane prices are hammered when propane inventory data doesn’t line up with industry expectations.
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Despite most of the country experiencing, on average, a relatively warm winter so far, certain non-weather-related factors are contributing to higher prices for propane and heating oil when compared to the same time last year, the U.S. Energy Information Administration (EIA) reports.
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The inventory draws in January and for the week ending Jan. 13 make it almost a certainty inventory will end this winter at its lowest point in three years.
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U.S. propane inventory ended 2016 at 84.123 million barrels after dropping 2.746 million barrels in the final week of the year.
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The U.S. domestic propane market continues to change. That’s the message from ICF International in a guest column written for LP Gas magazine.
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For the week ending Dec. 9, the U.S. Energy Information Administration reported a 3.629-million-barrel draw in U.S. propane inventory.
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LP Gas finds out what factors specific to the current heating season will impact total propane inventory through March 2017.
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