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Trader's Corner
This week’s Trader’s Corner tracks the latest on propane inventory.
As we filed this report last week, we were heading into the Thanksgiving weekend. If a propane retailer was lucky, he got a few minutes to prop his feet up at some point. It could have been the last chance that happens for several months.
Heading into the Thanksgiving weekend, propane prices were slipping despite some supportive inventory reports. We think some of the weakness can be attributed to timing. The frantic time of crop drying and preparing heat customers for winter is probably done for many, and it seems many years we go into a lull around Thanksgiving.
But from a purely propane inventory position, there is little reason for prices to soften up at this point. We are providing charts on propane inventories around the country and in Canada for you to ponder. Just a little food for thought, as if you didn’t have enough already.
These charts speak for themselves. In all of them, the red line is this year’s position, the green the five-year average, the blue last year and the shaded area the five-year high and low.
Call Cost Management Solutions today at 888-441-3338 for more information about how Client Services can enhance your business, or drop us an email at info@propanecost.com.
WEEK IN REVIEW
During the short week, propane prices drifted lower. Crude posted a brief rally but then retreated on bearish inventory data. We had gone bearish early in the week, but a lot can happen over a holiday, so we will begin this week neutral.
LAST WEEK'S DAILY HIGHLIGHTS
Monday: The big news coming out of the weekend was a preliminary deal between Iran and world powers concerning Iran’s nuclear work. Crude dropped 0.8 percent. Propane showed surprising weakness, with prices down around 2 percent.
Tuesday: Propane prices continued their rapid retreat and crude extended its losses. Positive news on the U.S. home construction market limited crude’s fall.
Wednesday: Propane had a rebound day after the U.S. Energy Information Administration reported another above-average draw on U.S. propane inventory. A build in crude inventory that pushed levels to 13.6 percent above the five-year average had crude in a sharp decline to close the shortened trading week.
Thursday: Markets closed for Thanksgiving.
Friday: Markets closed for Thanksgiving.
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