Analyzing demand data to clarify propane supply picture
July 17, 2017 By Mark Rachal
For the week ending July 7, the U.S. Energy Information Administration (EIA) reported a significant recovery in U.S….
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For the week ending July 7, the U.S. Energy Information Administration (EIA) reported a significant recovery in U.S….
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Growth in U.S. propane production has slowed from the breakneck pace of recent years, but it’s still on the rise in 2017.
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A majority of traders are in the propane business in some way, shape or form.
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Propane inventory has increased 10.774 million barrels since its first build for this year, which occurred during the week ending April 21.
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Last week, the Energy Information Administration reported U.S. propane inventory increased 3.446 million barrels.
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U.S. crude inventory is falling and that is helping fuel the recent uptrend in crude prices.
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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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Propane prices have been falling since mid-April as weakening export economics worry traders.
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Last year, only slightly more than 20 percent of U.S. propane came from the refining of crude oil.
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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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