Major propane price correction continues
November 23, 2021 By Mark Rachal
Propane markets are in the midst of a major price correction of around 25 percent and counting, which is very significant.
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Propane markets are in the midst of a major price correction of around 25 percent and counting, which is very significant.
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This winter, propane companies are planning ahead to ease fears of price spikes and supply shortages, among other factors.
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Mark Rachal, director of research and publications for Cost Management Solutions, discusses the propane inventory deficit and the mild start to heating season.
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Propane buyers and consumers should recognize how quickly the pricing environment could change should winter heating demand finally arrive.
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U.S. propane inventory increased to 73.620 million barrels as of Oct. 15, breaking a concerning downtrend in inventory from the prior two weeks.
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Mark Rachal, director of research and publications at Cost Management Solutions, discusses propane pricing trends and the impact of heating-degree days.
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Despite last week’s inventory draw, propane prices moved lower. Mark Rachal of Cost Management Solutions explains what this means for price protection.
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Mark Rachal of Cost Management Solutions offers steps propane buyers can take to protect themselves from rising propane prices this winter.
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Mark Rachal of Cost Management Solutions says propane fundamentals and crude price outlooks suggest high propane prices are here to stay this winter.
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Propane is currently trading at highs for the year, even taking into consideration the “spike” in Conway prices in February.
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