 
								Expectations for propane pricing relative to crude
June 10, 2020 By Mark Rachal
Mark Rachal looks at the relationship between propane and crude, and what to expect going forward based on that relationship.
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								Mark Rachal looks at the relationship between propane and crude, and what to expect going forward based on that relationship.
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								In 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.
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								The 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.
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								In 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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								In this issue of Trader’s Corner, Cost Management Solutions takes a look at how and why propane prices rebounded from January 2016 through October 2018.
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								In our monthly print and digital editions of LP Gas magazine, we feature a section that highlights the…
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								Marty Lerum of Propane Resources provides his thoughts on how propane retailers should respond to customers’ questions about supply and pricing.
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								The pricing pattern for March and May turned out to be very similar, but April was a little different.
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								Tucker Perkins provides a look at supply planning concerns during this past winter heating season.
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								Prices at Mont Belvieu reacted to the fall by increasing from 73 cents per gallon to more than $1 per gallon.
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