Inventory position has changed price curve
June 5, 2023 By Mark Rachal
In this week’s Trader’s Corner, Mark Rachal analyzes the latest propane inventory build and how it will impact the forward price of propane.
Read MoreIn this week’s Trader’s Corner, Mark Rachal analyzes the latest propane inventory build and how it will impact the forward price of propane.
Read MoreMark Rachal, director of research and publications with Cost Management Solutions, reviews strategies to watch out for price creep.
Read MoreIn addition to the weather, propane marketers now must consider how energy market movements owing to the war in Ukraine could impact their operations.
Read MoreThere have been some solid inventory builds for U.S. propane over the past couple of weeks, pushing the total to 7 percent higher than last year.
Read MoreThis winter, propane companies are planning ahead to ease fears of price spikes and supply shortages, among other factors.
Read MoreDespite high inventory levels at the propane trading hubs currently, we remain concerned about the potential for local market supply shortages during high winter demand periods.
Read MoreMark Rachal looks at the relationship between propane and crude, and what to expect going forward based on that relationship.
Read MoreIn addition to crude’s collapse, Rachal discusses the propane pricing and supply environment. COVID-19 will have a greater impact on propane supply than it will on propane demand, he says.
Read MoreThe price of crude has rebounded a little since, but the potential for it to go lower is still present due to demand destruction from COVID-19 and producers not cooperating to limit production.
Read MoreIn this week’s Trader’s Corner, we are going to take a closer look at U.S. propane production. Quite simply, too much production has been the reason that propane prices are under 40 cents at the hubs and near modern-day lows in relative value to WTI crude.
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