Most propane marketers track Mont Belvieu or Conway pricing closely, but far fewer manage the spread between those hubs and their actual rack costs with the same discipline. That gap, basis, rarely stays static, and when it moves, it directly impacts margin per gallon in ways that are not always obvious in daily operations. During… Continue reading Basis Risk Is Quietly Eroding Local Propane Margins
Weekly inventory data does more than signal supply levels, it quietly shapes margin exposure, routing decisions, and customer commitments across the propane supply chain. Yet traders and marketers often interpret the same report through very different lenses. Traders look for directional signals tied to pricing risk and regional imbalances, while marketers must translate those signals… Continue reading How Traders Read EIA Reports vs. Marketers
Supplier agreements are often treated as documents that get filed away and forgotten, but in the propane industry, they play a major role in shaping your company’s daily operations and long-term profits. Many propane businesses renew contracts automatically without reviewing the details. However, the market has changed in recent years – fuel costs fluctuate faster,… Continue reading Reviewing Supplier Terms Boosts Business Stability
