What happens when petchems shy away from propane?
October 23, 2017 By Mark Rachal and Dale Delay
With winter approaching, the most recent data shows petrochemical companies shying away from propane as a feedstock.
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With winter approaching, the most recent data shows petrochemical companies shying away from propane as a feedstock.
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As winter approaches, the Midwest, like the rest of the nation, has propane inventory levels that are below the five-year average and well below last year’s.
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WTI crude is an important metric because it gives propane retailers a way to evaluate the value of the product they sell. The comparison provides needed guidance when managing the price risks associated with propane supply.
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Propane prices have been falling since mid-April as weakening export economics worry traders.
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The growth in propane supply has been extraordinary, especially from 2012 to 2015. However, the growth in supply has slowed dramatically.
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It’s difficult to pinpoint the cause of the two-day runup in prices that eventually turned into a sharp sell-off. Cost Management Solutions examines the change.
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Propane prices have recently been on a surge. However, those increases in price have been contained to the front month.
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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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Propane prices have been on a strong uptrend over the past year as fundamental conditions improve.
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The price difference between the Mont Belvieu and Conway has tightened considerably over the last month and a half.
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