Big drop in demand undermines propane prices
May 15, 2017 By Mark Rachal and Dale Delay
There was a little less nervousness last week after the EIA’s weekly inventory data finally showed a significant build in U.S. propane inventory.
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There was a little less nervousness last week after the EIA’s weekly inventory data finally showed a significant build in U.S. propane inventory.
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Aging housing units with old appliances offer residential opportunities for propane marketers.
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Propane prices have been falling since mid-April as weakening export economics worry traders.
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Honeywell UOP commissioned operations at the largest single-train propane dehydrogenation unit in China at Yantai Wanhua Polyurethanes Group.
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The way last winter ended helps to form the foundation for Mike Sloan’s propane market outlook, which he presented at the NPGA Propane Expo.
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Nearly 80 percent of U.S. propane production came from natural gas processing last year. Natural gas production is the engine that drives natural gas supply.
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For the week ending March 31, the U.S. Energy Information Administration reported a 1.213-million-barrel draw in U.S. propane inventory.
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Production of LP gas increased in all regions of the United States last year except on the West Coast, according to the U.S. Energy Information Administration (EIA).
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U.S. propane prices are hammered when propane inventory data doesn’t line up with industry expectations.
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Propane inventories declined from October 2016 through March 2017 due to propane exports, according to the U.S. Energy Information Administration (EIA).
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