Taking a deeper look at propane price uncertainty
October 15, 2018 By Mark Rachal and Dale Delay
Throughout last week, Mont Belvieu’s price correction deepened and its value relative to crude continued to deteriorate.
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Throughout last week, Mont Belvieu’s price correction deepened and its value relative to crude continued to deteriorate.
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Here are the factors impacting the recent price spread between Conway propane and Mont Belvieu LST propane.
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Export activity in July and its resulting impact on U.S. inventory builds should be very interesting to monitor.
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The pricing pattern for March and May turned out to be very similar, but April was a little different.
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Propane has certainly been bullish in the last 10 days.
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Propane prices saw a significant change in April. Get more details on this shift.
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Changes in the price of Brent crude oil, as well as higher temperatures and lower inventories all impacted the price of propane this winter.
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A report from the U.S. Energy Information Administration (EIA) examines U.S. propane’s relationship with world propane prices and crude oil prices.
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As the impacts of winter demand wane this time of year, it is not unusual to see Conway prices move toward the weak side.
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There have been two primary factors behind the late-winter weakness in propane prices: rising propane production and lower propane exports.
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