Propane production on rebound as refinery throughput increases
June 29, 2020 By Mark Rachal
U.S. propane production has been on the rise over the past few weeks, putting a lid on propane…
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U.S. propane production has been on the rise over the past few weeks, putting a lid on propane…
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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 June 2020 focuses on propane inventory and production.
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Propane’s more supportive fundamental picture will keep it from falling to the extremely low values witnessed at the beginning of the year.
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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 2020 focuses on propane demand and production.
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Propane is trading at a record high relative value to WTI crude, which suggests traders see propane fundamentals as more supportive of its price.
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Under the current situation where crude is oversupplied on a global basis, U.S. propane supply fundamentals are becoming more price-supportive.
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While Saudi Arabia has called an emergency meeting of OPEC+, there is little doubt that U.S. production growth is very likely to slow in the future.
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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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ICF provides LP Gas with updates on the U.S. propane market. The data for February 2020 focuses on propane supply and gas plant production by source.
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