[Homestead] Propane prices
Gene GeRue
genegerue at ruralize.com
Fri Aug 3 11:53:22 EDT 2007
On Aug 3, 2007, at 8:09 AM, Don Bowen wrote:
> If history is any guide look here:
> http://tonto.eia.doe.gov/oog/info/twip/twip_propane.html
>
> Propane use and prices go up in fall as farmers use more for drying
> grain
> then a bit more for the fall and winter heating season then fall
> off again
> in spring and summer.
I talked at length with the manager at my closest supplier, in
Gainesville, MO. She says that prices used to adjust seasonally but
now do not. Here is another site with info:
http://www.eia.doe.gov/pub/oil_gas/petroleum/analysis_publications/
propane_prices_brochure/propbro.html
Turns out that prices are tied pretty closely to crude oil prices.
Propane is produced as a by-product in natural gas processing and
petroleum refining. It is used in plastics manufacture and
petrochemical production. Prices are also affected by supply source
and transportation. Midwest and Gulf states appear to have lowest
prices.
So it's a supply and demand crapshoot. Steve's peace-of-mind
criterion is as sound as any economist's estimate.
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