Winter 2020-21: Lessons to learn about supply and pricing
April 14, 2021 By LP Gas
Cost Management Solutions’ Mark Rachal discusses the heating season of 2020-21, highlighting factors that led to upward pressure on propane pricing.
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Cost Management Solutions’ Mark Rachal discusses the heating season of 2020-21, highlighting factors that led to upward pressure on propane pricing.
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The Midwest has been oversupplied and low-valued long enough that it lacks investment to meet needs in high-demand periods, says Mark Rachal.
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Days of supply measures available inventory to demand. As long as days of supply are trending lower, prices are certainly going to feel upward pressure.
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Since last week’s Trader’s Corner, there was a dramatic change in U.S. propane prices. The change began after the Martin Luther King Jr. Day holiday.
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As long as export demand remains strong, there is likely to be continued pressure on inventory and thus support for propane prices.
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Residential propane prices during the first two weeks of the winter heating season were 4 percent lower than during the same time last winter, the EIA reports.
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Mark Rachal of Cost Management Solutions takes a close look at propane inventory trends ahead of peak demand season.
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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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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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