Crude Oil started the day off in a big way, down over $1.50…propane prices followed suit a bit, off around a penny or so from where they ended the day Monday. Then crude rallied back and propane came back with it.
As of this writing, crude is back down $1.50 but propane is just .0025 off of where we ended the day yesterday. We’ll learn of the API reports later today and then tomorrow the EIA’s come out at 10:30 eastern. If those reports are on par with most of the weekly inventory reports we’ve seen the last six weeks, we could see this market run up a few more cents. Given the trends these past six or seven weeks, I’d wager that’s more likely than the reports coming out and showing bearishness.
We’ve had a busy week so far as several dealers have stepped in and covered a portion of their supply. These numbers are only going to be high if all of the bullishness evaporates and barring a warm winter like we saw in 2011-2012, I just don’t see anything out there which will pull the carpet out from underneath us for the foreseeable future. Sure, things can ebb and flow day to day and week to week, but I don’t see any ‘titanic shift’ out there at the present.