Slide 14 of 25
Notes:
- Prices are one of the first signals in deciphering what is happening in the market.
- This chart shows propane prices (both spot and retail) as well as spot heating oil and crude. Most prices track the price of crude oil. Hence, crude oil is a major driver behind product price swings.
- Propane prices move with the heating fuels in the winter months, and compete with both crude-based and natural gas-based fuels in the petrochemical market during the summer.
- During December 1989 and the winter of 1996-97, propane prices spiked well above crude oil. When supply begins to run short of demand, prices are bid up rapidly. This past winter and current prices are not spiking above crude oil, but following the rapid increase in crude oil prices.
- Propane spot prices at Mt. Belvieu have been about 55 cents per gallon, heading up towards 60 cents.
