COMMENTARY OMG

A number of wholesalers had pulled their posted rack prices Thursday as price volatility and unprecedented demand continued to roil the propane markets. Principal postings, where available, have stretched higher by an astounding 15.5 to as much as 300 cents since Monday. Increases from 55 to more than 150 cents were common.



Other sellers that provided a posting cautioned buyers to call for prices before showing up to lift loads due to limited availability of gallons at the quote. Still others were temporarily unable to offer product at terminals because of allocation constraints.



At the same time, prices across the nation have continued to spike, with the Midwest crisis spreading to all regions, including the West Coast where postings jumped 6 to 12 cents over the week.



Meanwhile, intra-day price revisions have been flying out of wholesalers’ offices, often as many as three a day, two before the noon hour. All postings published in this issue of the NEWSLETTER were up to date as of press time, 7 a.m. Pacific Time. However, prices are in flux, and changes are occurring rapidly. Noon revises are common, and still more sellers may be pulling their rack prices.



Dixie Pipeline postings at Apex, N.C. were 55 to 300 cents higher Thursday compared to the Monday email Update, shifting prices up to a range of 218.05 to 513.04 cents/gal. MAPCO postings at Conway, Kan. climbed 160 to 173 cents, and postings were from 362.35 to 387.75 cents.



TEPPCO postings at Selkirk, N.Y. gained 13.25 to 49.63 cents, and prices were from 232.34 to 283.05 cents/gal. Mont Belvieu postings, at a wide 164.69 to 188.25 cents, reflected increases of 15.5 to 30 cents or, in the case of one

seller, a drop of 30.5 cents.