Domestic market changes to hold retailers’ attention in 2018
January 2, 2018 By Brian Richesson
The increase in U.S. propane exports and export capacity has captured the industry’s attention for the last several years.
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The increase in U.S. propane exports and export capacity has captured the industry’s attention for the last several years.
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For this year’s State of the Industry report, we asked propane retailers about their favorites, as well as the issues affecting their operations.
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It is difficult to believe, but domestic propane demand is running slightly below last year’s levels for the same time of year.
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Propane supply gets less attention than demand, but is more important in setting the pricing environment.
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U.S. propane retailers got an early Christmas present when the EIA reported a surprise 1.316-million-barrel build in U.S. propane inventory.
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As a result of higher crude oil prices, colder expected winter temperatures and lower fuel inventories than last winter, the EIA predicts propane prices will remain high through March.
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According to the U.S. Energy Information Administration, propane exports reached a record high of 913,000 barrels per day in the first half of 2017.
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U.S. propane supply is growing, but not as much as in past years.
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As the winter season approaches, the U.S. Energy Information Administration forecasts average household expenditures for all major home heating fuels will rise.
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It has been a tough three weeks for propane inventories, as the typical period of inventory build nears its end.
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