Propane built 1M/bbls this past week, according to today’s EIA report, which was a bit of a surprise as the industry was anticipating a build of half that size, on the average.
Here is where we stand on inventories this year, on the left, compared with the same time frame from last year, on the right:
Propane production remains above 2M/bpd, but the export numbers these past two weeks just seem low to me, or lower than what the industry has been expecting to see. Domestic demand was strong again this week, over 1.3M/bpd, so I am a bit surprised to see the 1M/bbl build.
Crude oil also built over 3M/bbls…so far on the day, propane’s average values in MTB and Conway are lower than they closed yesterday.
Concerns over the global economy are still eating away at trader confidence, as hedge funds have cut their net long positions again this week and we are now seeing the lowest ratio of bullish to bearish bets we have seen in this space in 2018 (graphic from the WSJ):
If you are not yet a subscriber to The Propane Buzz (which you can be for as little as $99/mo by clicking here), you’ll want to watch the back half of the video as I share some long range weather intel from our meteorological partner, BAMWx.com. I sent out much more than this to Propane Buzz subscribers already this morning, and subscribers receive daily extended weather forecast videos and temperature maps from BAM.
The next five months are the most important period for your business, not just for this year, but for 2018-2019, as some of the key purchasing and supply decisions for NEXT winter will (should) also be made during this time period. If you subscribe to The Propane Buzz, you have hired a partner to help you make the most informed decisions that have a direct impact to your profitability. We help over 100 of your fellow propane retailers with their decisions and we can do the same for you…and we can also help you implement the most cutting edge strategies and tools that are available to you that can have an immediate, real money savings impact to your business. I can tell you exactly where we can save you that money in a five minute phone call. Shoot me an email and we can set up a time for a quick conversation.
The Propane Buzz will help you keep more profits in your business and also provide you with weather and market information that can help you maximize every penny of margin that is available to you. What are you waiting for? CLICK HERE TO SUBSCRIBE TODAY (you can sign up for a month to month subscription, and cancel at any time if you are not pleased with the product)