Propane supply growth begins to slow
November 4, 2019 By Mark Rachal
Propane/propylene supply is setting five-year highs with each passing week, but it appears to have peaked at 2.361 million bpd during the week ending Aug. 2.
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Propane/propylene supply is setting five-year highs with each passing week, but it appears to have peaked at 2.361 million bpd during the week ending Aug. 2.
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Why is this important? The increase in LNG export volumes allows the production of more natural gas. More natural gas production means increased propane supplies.
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Propane’s relative value drops to record lows as winter approaches. Such low valuation reflects record-high production that is overwhelming demand.
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For the week ending Sept. 20, the U.S. Energy Information Administration reported a major jump in U.S. propane demand of 743,000 barrels per day.
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Last week in Trader’s Corner, we took a close look at natural gas production and drilling. Since more…
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U.S. crude production continues to rise, reaching a record high of 12.5 million barrels per day during the week that ended Aug. 23.
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U.S. propane inventory grew nearly 4 million barrels last week as exports remained sluggish for a second week in a row.
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On Wednesday, the Energy Information Administration (EIA) reported a significant drop in U.S. propane exports for the week ending Aug. 9.
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A big change in the U.S. propane supply demand balance between 2018 and 2019 has driven prices sharply lower.
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The focus of last week’s Trader’s Corner was Canadian propane inventory, which is setting five-year lows for this time of year. As we pointed out, a big reason is increased exports by Canadian producers.
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