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To: DannyTN

Will the price of propane go up or down?


69 posted on 04/20/2020 10:17:20 AM PDT by central_va (I won't be reconstructed and I do not give a damn...)
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To: central_va
Not an expert, but google just told me that propane is produced as a byproduct of two processes: natural gas production and oil refining.

Natural gas is considered a substitute for oil. So with oil so cheap, natural gas production will probably fall.

And with the shut down, oil refining is going to stall too.

So I see the production of propane being significantly reduced.

On the demand side, I see that industrial and commercial use is a lot higher than residential use. I'm guessing commercial is probably mostly restaurants. So I'm thinking residential use is up a little. Bring on the back yard barbecues. But industrial and commercial will be seriously down.

I'm just guessing. I think demand drops more than supply does and the price goes down. It's been in a downtrend for a couple of years.

93 posted on 04/20/2020 11:19:08 AM PDT by DannyTN
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