Protecting margins when propane prices rise rapidly
January 20, 2021 By Mark Rachal
The quick gains in propane prices like those experienced this past week can have an immediate impact on a retail company’s bottom line.
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The quick gains in propane prices like those experienced this past week can have an immediate impact on a retail company’s bottom line.
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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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Despite ample inventories, U.S. propane prices have appreciated markedly this winter, with most of the gain coming in the last few weeks.
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Those of you who are regular readers of Trader’s Corner will remember that we set benchmarks on crude…
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In an interview with LP Gas, Mark Rachal of Cost Management Solutions advises that retailers stay ahead of the game on propane cost and supply when considering the upcoming winter.
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Developments in crude production and pricing should be watched carefully to see how that translates to propane production and pricing leading up to winter.
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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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Over the last few Trader’s Corners, we have established some benchmarks for crude and propane. We have discussed…
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In addition to crude’s collapse, Rachal discusses the propane pricing and supply environment. COVID-19 will have a greater impact on propane supply than it will on propane demand, he says.
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A report from the U.S. Energy Information Administration (EIA) reminded us of just how similar the current supply…
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