Propane rallies amid crude pricing struggles
April 23, 2020 By Mark Rachal
The oversupply in crude is leading to reduced propane supply, which is causing the value of the two commodities to separate.
Read More Trajectory of refinery throughput to impact propane production
April 14, 2020 By Mark Rachal
Under the current situation where crude is oversupplied on a global basis, U.S. propane supply fundamentals are becoming more price-supportive.
Read More How the crude war could impact propane prices
April 9, 2020 By Mark Rachal
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.
Read More Retailers can use swaps to lock down future prices
March 31, 2020 By Mark Rachal
Retailers could take swap positions each month from now until winter that would allow them to have near the current price next winter.
Read More US may become swing producer due to shifting crude prices
March 24, 2020 By Mark Rachal
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.
Read More Slowing production may impact pricing, inventory levels
March 10, 2020 By Mark Rachal
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.
Read More Has the change in price trend begun?
February 3, 2020 By Mark Rachal
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.
Read More Timing and opportunity
January 21, 2020 By Mark Rachal
As propane inventory rises, prices tend to fall, and as inventory falls, prices tend to rise. But we also noted some exceptions.
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Liquefied natural gas exports expand propane supply
October 21, 2019 By Mark Rachal
Why is this important? The increase in LNG export volumes allows the production of more natural gas. More natural gas production means increased propane supplies.
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Propane’s relative value drops to record lows
October 14, 2019 By Mark Rachal
Propane’s relative value drops to record lows as winter approaches. Such low valuation reflects record-high production that is overwhelming demand.
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