Watch propane price curves to chart a course
January 3, 2023 By Mark Rachal
Mark Rachal, director of research and publications with Cost Management Solutions, looks at the forward price curve for propane.
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Mark Rachal, director of research and publications with Cost Management Solutions, looks at the forward price curve for propane.
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Our predictions were a little right and wrong. We saw the potential for lower prices, but we significantly underestimated the potential size of the drop.
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We are at the point of rejection occurring, but it has not been based on our premise that natural gas prices would rise faster than crude and propane’s price.
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Propane prices during the first month of the current winter heating season were essentially unchanged compared with prices at the same time last winter.
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The propane industry avoided what one leader called a “catastrophic” situation when Congress intervened to prevent a national rail union strike.
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With propane at such a low value, any change in propane’s fundamentals will allow prices to rise with crude, and prices could rise with crude regardless.
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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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Mark Rachal, director of research and publications with Cost Management Solutions, evaluates how the recent weather changes could impact propane supply.
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This week, Mark Rachal, director of research and publications with Cost Management Solutions, examines the current state of the distillate market.
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Mark Rachal, director of research and publications with Cost Management Solutions, evaluates propane inventory levels as we approach winter.
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