Consider these reasons to buy propane for next winter
March 24, 2021 By Mark Rachal
Biting off a little 80-cent propane for next winter might not taste as bitter as we imagine, says Mark Rachal of Cost Management Solutions.
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Biting off a little 80-cent propane for next winter might not taste as bitter as we imagine, says Mark Rachal of Cost Management Solutions.
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Each month, LP Gas provides updates on the U.S. propane market. The data for February 2021 compares propane spot prices at Mont Belvieu and internationally.
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If we can pluck good news from propane prices, it would be that next winter’s prices are much lower than the current prices.
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Days of supply measures available inventory to demand. As long as days of supply are trending lower, prices are certainly going to feel upward pressure.
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Since last week’s Trader’s Corner, there was a dramatic change in U.S. propane prices. The change began after the Martin Luther King Jr. Day holiday.
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The quick gains in propane prices like those experienced this past week can have an immediate impact on a retail company’s bottom line.
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As long as export demand remains strong, there is likely to be continued pressure on inventory and thus support for propane prices.
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Despite ample inventories, U.S. propane prices have appreciated markedly this winter, with most of the gain coming in the last few weeks.
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Those of you who are regular readers of Trader’s Corner will remember that we set benchmarks on crude…
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In an interview with LP Gas, Mark Rachal of Cost Management Solutions advises that retailers stay ahead of the game on propane cost and supply when considering the upcoming winter.
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