Propane inventory, prices climb: Here’s why
July 2, 2018 By Mark Rachal and Dale Delay
Export activity in July and its resulting impact on U.S. inventory builds should be very interesting to monitor.
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Export activity in July and its resulting impact on U.S. inventory builds should be very interesting to monitor.
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The EIA reports the United States exported 905,000 bpd of propane, with the largest volumes going to supply petrochemical feedstock demand in Asian countries.
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Mariner East 1 pipeline came back online and propane exports to Asian countries were on the rise in 2017.
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U.S. propane inventory increased very lightly last week. Find out why.
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According to the Energy Information Administration, fossil fuels are consumed but not combusted when they are used for construction materials, chemical feedstocks, lubricants, solvents, waxes and other products.
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The Energy Information Administration reports U.S. refinery runs reached record highs. The refinery output of petroleum products outpaced the increased U.S. consumption.
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U.S. propane production is much higher than domestic propane demand, leaving propane exports to play the role of balancing U.S. supply with demand.
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The U.S. Energy Information Administration reported U.S. domestic demand for propane at 1.496 million barrels per day (bpd) for the week ending April 6.
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Propane rises to the task of serving oil and gas field equipment and accommodations in an attempt to replace diesel.
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Change has been in the works for several years now as the U.S. propane market has become a net exporter of propane.
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