Buying propane for winter 2021-22 might be a good value
February 9, 2021 By Mark Rachal
If we can pluck good news from propane prices, it would be that next winter’s prices are much lower than the current prices.
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If we can pluck good news from propane prices, it would be that next winter’s prices are much lower than the current prices.
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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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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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The Federal Reserve Bank of Dallas released the results of a survey of oil industry executives last week. The survey found that 66 percent of the 154 executives surveyed believe that U.S. crude production has peaked.
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The themes of planning, preparation and communication – principles that help guide us in our personal and professional lives – are dominating the airwaves this summer.
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The EIA reported a surprising and unusual draw of 41,000 barrels in U.S. propane inventory, which came when industry analysts expected a 2.31 million-barrel build.
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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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