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  • From: Gene GeRue <genegerue AT ruralize.com>
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] Propane prices
  • Date: Fri, 3 Aug 2007 08:53:22 -0700


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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