Potential impacts of Biden presidency on propane
November 9, 2020 By Mark Rachal
President-elect Joe Biden’s outlook on energy is considerably different than outgoing President Donald Trump’s. Mark Rachal explains how.
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President-elect Joe Biden’s outlook on energy is considerably different than outgoing President Donald Trump’s. Mark Rachal explains how.
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This past week, we got an email from one of our clients expressing confusion about U.S. propane production….
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The last two Weekly Petroleum Status Reports from the Energy Information Administration (EIA) have shown a decline in total U.S. propane inventory.
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Despite 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.
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The more the industry can bill and operate like a utility company and move away from the buy-and-mark-up model of a service station, the better.
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In an interview with LP Gas, Mark Rachal of Cost Management Solutions advises that retailers stay ahead of the game on propane cost and supply when considering the upcoming winter.
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The Federal Reserve Bank of Dallas released the results of a survey of oil industry executives last week. The survey found that 66 percent of the 154 executives surveyed believe that U.S. crude production has peaked.
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For the week ending Sept. 4, U.S. propane inventory was at 97.380 million barrels – a record high for this time of year and 5.424 million barrels below its all-time high.
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Cost 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.
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As fate would have it, propane pushed above 50.2 percent of WTI crude and 48 cents over the past week.
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