
Crude releases could make propane buyers complacent
April 17, 2023 By Mark Rachal
Cost Management Solutions’ Mark Rachal evaluates how releases from the U.S. Strategic Petroleum Reserve will impact prices.
Read MoreCost Management Solutions’ Mark Rachal evaluates how releases from the U.S. Strategic Petroleum Reserve will impact prices.
Read MoreBecause propane is a byproduct, its price is heavily influenced by what is going on with other commodities, namely crude and NGLs.
Read MoreDespite high inventory levels at the propane trading hubs currently, we remain concerned about the potential for local market supply shortages during high winter demand periods.
Read MoreCost 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.
Read MoreDevelopments in crude production and pricing should be watched carefully to see how that translates to propane production and pricing leading up to winter.
Read MoreCost Management Solutions saw prices move outside of the benchmarks for both crude and propane in the weeks after it shared its current short-term benchmarks with readers.
Read MoreAs fate would have it, propane pushed above 50.2 percent of WTI crude and 48 cents over the past week.
Read MorePropane fundamentals changed in 2020, causing the inventory overhang to be eliminated and pushing propane to the 50/50 marks.
Read MoreProducers voluntarily shut production during April, and the associated natural gas liquids loss dramatically impacted propane fundamentals.
Read MoreMark Rachal looks at the relationship between propane and crude, and what to expect going forward based on that relationship.
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