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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The U.S. Energy Information Administration (EIA) is anticipating more space heating demand this winter as more people work or attend school from home.
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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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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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Cost Management Solutions saw prices move outside of the benchmarks for both crude and propane in the weeks after it shared its current short-term benchmarks with readers.
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Each month, LP Gas provides updates on the U.S. propane market; the data for August 2020 focuses on crude oil and propane price trends.
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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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Over the past five weeks, propane production has been down. Mark Rachal takes a look at the scoreboard for U.S. propane inventory levels compared to prices.
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Inventory builds were late in starting this year, and now that they have, last week’s data showed they can be lighter than normal.
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