Propane inventory just keeps building
November 29, 2022 By Mark Rachal
Inventory is 9.7 percent above its five-year average. We have only seen inventory higher than this four times in the past 19 years, says Mark Rachal of CMS.
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Inventory is 9.7 percent above its five-year average. We have only seen inventory higher than this four times in the past 19 years, says Mark Rachal of CMS.
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In addition to the weather, propane marketers now must consider how energy market movements owing to the war in Ukraine could impact their operations.
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Mark Rachal of Cost Management Solutions offers steps propane buyers can take to protect themselves from rising propane prices this winter.
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Mark Rachal, director of research and publications for Cost Management Solutions, addresses the fundamental drivers of propane inventory levels.
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Propane prices are mostly influenced by crude’s price, not natural gas’s price. But the vast majority of propane supply comes from natural gas processing.
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The relatively light build for the week ending July 9 marked the fifth week in a row of inventory building at a below-average pace.
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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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Each month, LP Gas provides updates on the U.S. propane market, as well as the latest trends. The data for May 2021 focuses on forklift truck factory shipments.
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U.S. natural gas plant liquids bucked the trend of overall fossil fuel production declines in 2020 and increased their production by 7 percent.
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The Federal Reserve Bank of Dallas released the results of a survey of oil industry executives last week. The survey found that 66 percent of the 154 executives surveyed believe that U.S. crude production has peaked.
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