Propane demand pattern suggests need for price protection this winter
August 9, 2022 By Mark Rachal
In this week’s Trader’s Corner, Mark Rachal of Cost Management Solutions reviews propane demand and pricing thus far in 2022.
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In this week’s Trader’s Corner, Mark Rachal of Cost Management Solutions reviews propane demand and pricing thus far in 2022.
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EIA data shows that propane demand exceeded supply, resulting in a 10-million-barrel draw in propane inventory. That helped support higher propane prices.
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This week’s data suggests export reporting got back on track, but we still need to monitor for the possibility of an increase in overall demand.
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For the week ending Dec. 10, U.S. propane exports dropped to 847,000 barrels per day (bpd) – 509,000 bpd less than the same week last year.
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Each month, LP Gas provides updates on the U.S. propane market, as well as the latest trends. The data for May 2021 focuses on forklift truck factory shipments.
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U.S. exports of propane have been increasing, primarily to countries in East Asia, as a result of cold weather and robust petrochemical feedstock consumption.
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U.S. domestic demand for propane increased a whopping 714,000 barrels per day (bpd) during the fifth week of the year to 2.204 million bpd.
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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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Each month, LP Gas provides updates on the U.S. propane market, as well as the latest trends. The data for May 2020 focuses on propane demand and production.
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