Upward pressure on propane prices continues
July 13, 2021 By Mark Rachal
Propane production needs to stabilize or grow to change the pricing environment so propane prices fall again, says Mark Rachal of Cost Management Solutions.
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Propane production needs to stabilize or grow to change the pricing environment so propane prices fall again, says Mark Rachal of Cost Management Solutions.
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Not only does EIA data show propane inventory near five-year lows, but prices at Mont Belvieu topped the $1-a-gallon mark for the first time since 2018.
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The price change was the largest within-season increase in residential propane prices since the 2013-14 season.
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Retailers that evaluate market conditions and establish buying criteria based on that evaluation may find that they captured the lowest price of the year.
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Cost Management Solutions’ Mark Rachal discusses the heating season of 2020-21, highlighting factors that led to upward pressure on propane pricing.
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Propane retailers should use all of the market knowledge and risk management tools available to lower supply cost, says Mark Rachal of CMS.
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Two propane supply trends could warrant some caution about buying propane for next winter, 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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