Propane: Get It While It’s Hot
July 19, 2018
Written By Tim Danze
Summer is here, and it is officially barbecue season. Propane fuels grills across the country, but the pursuit of a perfectly grilled pork chop isn’t the only reason to purchase propane this summer. It is never too early to start getting ready for winter.
As we came out of last winter, propane stocks had been drawn down substantially and inventories stood at 35.7 million barrels by the end of April. This put propane supplies well below the three-year average for that time of year. Propane market players wondered if there would be enough time to build stocks back up to a comfortable level before the return of cold weather, and prices moved higher as a result.
The spring buildup in inventory started slowly but has ramped up in recent months. Total stocks currently sit at 63.6 million barrels, which is just above the three-year average for mid-July. There are now about two months left in the inventory buildup season, and the market concerns about inventory levels have abated, causing prices to ease lower over the last month. Summer has traditionally offered one of the best times of the year to lock in and/or purchase propane, and this summer certainly looks no different.
I understand spending money on propane when it is not necessarily in need can be an issue for some customers. In order to mitigate this concern, MFA Oil offers a variety of payment plans to make budgeting ahead a breeze. You can choose from options that allow you to spread the cost out over a period of time. If you are worried about the potential of missing out on a lower price, MFA Oil also offers a maximum price contract option to let you lock in a price you are comfortable with and still qualify for the possibility of lower pricing upon delivery, based on market prices.
Propane is a global commodity, and activities around the world can impact it, in addition to our own winter. For example, if Gulf Coast propane providers increased exports, it could drive prices higher. But if larger exports do not materialize, then prices may stay relatively flat.
Purchasing propane for your tank now is the easiest way to prepare for the coming winter. Take action by filling your propane tank today, and you will be ready for anything Mother Nature could throw at you this winter.