
Conway propane prices hold unusual premium over Mont Belvieu
August 17, 2021 By Mark Rachal
Propane’s price may get to the point of curbing the demand from PDH units, but most analysts don’t think that is happening anytime soon.
Read MorePropane’s price may get to the point of curbing the demand from PDH units, but most analysts don’t think that is happening anytime soon.
Read MoreDespite high inventory levels at the propane trading hubs currently, we remain concerned about the potential for local market supply shortages during high winter demand periods.
Read MoreCost Management Solutions saw prices move outside of the benchmarks for both crude and propane in the weeks after it shared its current short-term benchmarks with readers.
Read MoreAs fate would have it, propane pushed above 50.2 percent of WTI crude and 48 cents over the past week.
Read MoreOver the past five weeks, propane production has been down. Mark Rachal takes a look at the scoreboard for U.S. propane inventory levels compared to prices.
Read MoreInventory builds were late in starting this year, and now that they have, last week’s data showed they can be lighter than normal.
Read MoreThe oversupply in crude is leading to reduced propane supply, which is causing the value of the two commodities to separate.
Read MoreRetailers could take swap positions each month from now until winter that would allow them to have near the current price next winter.
Read MorePropane inventory positions are a reflection of all underlying fundamental conditions, such as production, imports, exports and domestic demand.
Read MoreMost readers of this report know Cost Management Solutions is a company that provides support to retailers that want to hedge. Hedging is often misunderstood as to what it is supposed to accomplish.
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