{"id":59996,"date":"2021-10-19T19:03:49","date_gmt":"2021-10-20T00:03:49","guid":{"rendered":"https:\/\/olduvai.ca\/?p=59996"},"modified":"2021-10-19T19:03:49","modified_gmt":"2021-10-20T00:03:49","slug":"ihs-market-warns-of-armageddon-for-us-propane-market","status":"publish","type":"post","link":"https:\/\/olduvai.ca\/?p=59996","title":{"rendered":"IHS Market Warns Of “Armageddon” For US Propane Market\u00a0"},"content":{"rendered":"
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IHS Market Warns Of “Armageddon” For US Propane Market\u00a0<\/a><\/h3>\n<\/header>\n
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The expanding energy crisis is causing propane to rocket higher (read:\u00a0here<\/a>) as supplies dwindle to below seasonal levels as research firm IHS Markit Ltd. warns of “armageddon” during the Northern Hemisphere winter.<\/p>\n

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IHS analyst Edgar Ang told attendees during a virtual presentation on Tuesday that US propane inventories are at a record low and will be extremely tight as cold weather is ahead. Mean temperatures in the Lower US 48 are expected to dip into the 60-55F range through the end of this month.<\/p>\n

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Heating degree days are set to soar by month end, suggesting the heating season has already begun.<\/p>\n

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Ang said 1Q22 prices are already above later-dated supplies that\u00a0“it may indicate players are preparing for propane-market armageddon.”<\/em><\/strong>\u00a0He warned some areas of the country might be prone to shortages this winter.<\/p>\n

Propane prices, which are used for heating resident and commercial building structures and also used for industrial production of plastics, have jumped to the highest in a decade due to increasing overseas demand and tight production. The surge comes as a\u00a0global energy crunch<\/a>\u00a0threatens to derail the global economy.<\/p>\n

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In a separate report, the Energy Information Administration (EIA) expects households that use propane and\u00a0heating oil<\/a>\u00a0this year will spend much more than last. This could strip out some of their spendings in other areas of the economy, such as eating out.<\/p>\n

Soaring energy prices, plus food, shelter, and other costs, will continue to pressure the Biden administration to solve persistent inflation that eats away at real wages.<\/p>\n

Making matters worse IHS expects a cooler winter that could boost energy demand and continue to place a bid under propane prices, analyst Veeral Mehta said.<\/p>\n

It’s only now that the Biden administration wishes there was global warming.<\/p>\n<\/div>\n<\/div>\n","protected":false},"excerpt":{"rendered":"

IHS Market Warns Of “Armageddon” For US Propane Market\u00a0 The expanding energy crisis is causing propane to rocket higher (read:\u00a0here) as supplies dwindle to below seasonal levels as research firm IHS Markit Ltd. warns of “armageddon” during the Northern Hemisphere winter. IHS analyst Edgar Ang told attendees during a virtual presentation on Tuesday that US […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[2,3],"tags":[9145,4053,31091,3237,827,4318],"class_list":["post-59996","post","type-post","status-publish","format-standard","hentry","category-economics","category-energy-2","tag-propane","tag-shortages","tag-supply-chain-disruptions","tag-supply-chains","tag-united-states","tag-zerohedge"],"_links":{"self":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59996","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59996"}],"version-history":[{"count":0,"href":"https:\/\/olduvai.ca\/index.php?rest_route=\/wp\/v2\/posts\/59996\/revisions"}],"wp:attachment":[{"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59996"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59996"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/olduvai.ca\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59996"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}