Markets are moving up incredibly fast. In fact, I just had to come back and edit this email because prices had moved up again as I was typing it.
Crude is up over $1.70 today of this writing on stronger Chinese economic news. Earlier this week, propane inventories showed draw downs in key areas. This is on top of the Petchem and export data I have been sharing. Also, we know of at least three large (and I mean large) oil companies who have been shorting this propane market and are buying current barrels and rolling their shorts forward. If this sounds familiar to some of you it should as I told you that back in May. This is still a problem as it relates to how skittish the propane market is.
Current month gas is not all that discounted compared to 1st Quarter 2014..some people see that as bearish…we don’t. Gas still needs to be bought and people are paying up in the front months for it and sticking it into storage. They will still have outmonth covering to do, so I continue to struggle to find many bears in this market.