An analysis of recent propane inventory movements – Market Realist

Propane is a natural gas liquid (or NGL). NGLs are hydrocarbons in the same family of molecules as natural gas and crude oil. Other NGLs include ethane, butane, and pentane. Propane and ethane in particular are both important feedstock for chemical plants. Around 5% of all American homes use propane as a heating fuel. So it’s important for investors to monitor propane prices.Propane prices affect propane distributors such as Ferrellgas Partners (FGP), Suburban Propane Partners (SPH), AmeriGas (APU), and NGL Energy Partners (NGL). Most of these companies are components of the Global X MLP ETF (MLPA).In the last week of December, residential propane prices averaged ~2.37 per gallon, which was $0.01 less than the prior week and $0.43 less than the price at the same time the year before. This is a big change from last year when prices spiked as supplies dwindled due to a cold winter.

via An analysis of recent propane inventory movements – Market Realist.

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