Advice on demand for domestic propane retailers
October 7, 2020 By Mark Rachal
The more the industry can bill and operate like a utility company and move away from the buy-and-mark-up model of a service station, the better.
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The more the industry can bill and operate like a utility company and move away from the buy-and-mark-up model of a service station, the better.
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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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For the week ending Sept. 4, U.S. propane inventory was at 97.380 million barrels – a record high for this time of year and 5.424 million barrels below its all-time high.
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Cost Management Solutions’ benchmark prices are at 50 cents per gallon for Mont Belvieu LST and $42 per barrel for WTI crude, but there is potential for a drop.
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The themes of planning, preparation and communication – principles that help guide us in our personal and professional lives – are dominating the airwaves this summer.
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The EIA reported a surprising and unusual draw of 41,000 barrels in U.S. propane inventory, which came when industry analysts expected a 2.31 million-barrel build.
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Developments in crude production and pricing should be watched carefully to see how that translates to propane production and pricing leading up to winter.
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As fate would have it, propane pushed above 50.2 percent of WTI crude and 48 cents over the past week.
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Propane fundamentals changed in 2020, causing the inventory overhang to be eliminated and pushing propane to the 50/50 marks.
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The market data for July focuses on completed liquid pipeline projects. Find out more about this year’s completed projects.
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