
How supply impacts propane inventory levels
August 10, 2021 By Mark Rachal
Propane inventory is declining, and the underlying data tells us why. Mark Rachal explains how supply impacts propane inventory levels.
Read MorePropane inventory is declining, and the underlying data tells us why. Mark Rachal explains how supply impacts propane inventory levels.
Read MoreMark Rachal, director of research and publications for Cost Management Solutions, addresses the fundamental drivers of propane inventory levels.
Read MorePropane prices are mostly influenced by crude’s price, not natural gas’s price. But the vast majority of propane supply comes from natural gas processing.
Read MoreThe relatively light build for the week ending July 9 marked the fifth week in a row of inventory building at a below-average pace.
Read MorePropane production needs to stabilize or grow to change the pricing environment so propane prices fall again, says Mark Rachal of Cost Management Solutions.
Read MoreIn a backwardated pricing environment, you may want to consider using financial swaps to lock the price of supply in future months, says Mark Rachal of CMS.
Read MoreNot only does EIA data show propane inventory near five-year lows, but prices at Mont Belvieu topped the $1-a-gallon mark for the first time since 2018.
Read MoreFor future reference, use this list of key points about financial swaps and how they can be used with pre-buys and spot buying to manage price risks.
Read MoreMark Rachal of Cost Management Solutions explains how using financial swaps differs from doing a pre-buy to manage supply costs.
Read MoreA “stop loss” is a threshold that will trigger a position to close, thus limiting the loss on a position that is not performing as expected.
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