Strategies for managing rapidly rising propane prices
September 21, 2021 By Mark Rachal
Propane is currently trading at highs for the year, even taking into consideration the “spike” in Conway prices in February.
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Propane is currently trading at highs for the year, even taking into consideration the “spike” in Conway prices in February.
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Propane retailers must go into their peak demand period assuming they will continue to see strong competition for the available supply.
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With the disappointing week 35 build in the books, U.S. propane inventory is 25.94 million barrels, or 27.2 percent, below this time last year.
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Trader’s Corner, a weekly partnership with Cost Management Solutions, analyzes propane supply and pricing trends. This week, Mark Rachal,…
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This week, Mark Rachal, director of research and publications, explains why a small shift in propane price strength is worth noting.
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Propane’s price may get to the point of curbing the demand from PDH units, but most analysts don’t think that is happening anytime soon.
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Propane inventory is declining, and the underlying data tells us why. Mark Rachal explains how supply impacts propane inventory levels.
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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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