Propane shortage

[k0ua]

Yeah we are locked in at $4.50 when we ordered, They have not delivered yet, and won't with the snowfall, and our road. They won't come down it until they can see pavement all the way. No paperboy or garbage truck either.. UPS guys will walk the road to deliver packages, bless their hearts. I would not have believed it, but they do it. Just walking this stupid road is taking your life in your hands when it is icy.

 

[teejk]

Yeah, the new has worn off. Now everyone is hunkering down trying to figure out how they are gonna pay for it.

Yup...last year we paid 1.49 all year. Last fill about a month ago 2.39 and was shocked. Since then I heard about 6.00 (if you could get it). Nothing normal here. Problem is that it is a global market and somebody sitting at a computer in Switzerland or Moscow or London or Bejeing or whatever has a lot to say about what we pay even though the last thing they want is to take delivery (like oil, they are called "paper barrels"). Interesting fact that I read...50 million people in the country heat their homes with propane. The impact of having to pay this much more is going to show up in retail/auto/whatever stats in a few months.

 

[ovrszd]

Yup...last year we paid 1.49 all year. Last fill about a month ago 2.39 and was shocked. Since then I heard about 6.00 (if you could get it). Nothing normal here. Problem is that it is a global market and somebody sitting at a computer in Switzerland or Moscow or London or Bejeing or whatever has a lot to say about what we pay even though the last thing they want is to take delivery (like oil, they are called "paper barrels"). Interesting fact that I read...50 million people in the country heat their homes with propane. The impact of having to pay this much more is going to show up in retail/auto/whatever stats in a few months.

I totally agree. My Brother keeps up with all this World trade stuff. He says our government raised the export level to China anticipating another mild Winter and bending to the pressures of producers.

I also agree that this will show up somewhere. All our President can do is talk about Health Care and Immigration Reform. This will turn into a Multi Billion Dollar event and no mention.

 

[k0ua]

I totally agree. My Brother keeps up with all this World trade stuff. He says our government raised the export level to China anticipating another mild Winter and bending to the pressures of producers.

I also agree that this will show up somewhere. All our President can do is talk about Health Care and Immigration Reform. This will turn into a Multi Billion Dollar event and no mention.

Hm... the administration must have been drinking their own "global warming" Kool-Aid because the ole Farmers Almanac warned of a very cold winter, and that is just what we got.

2013–2014 U.S. Weather Highlights
Frigid Winter With Bitter Cold and Heavy Snow
Brrrrr! It looks like global warming will soon be taking a vacation to make room for Old Man Winter. This frosty forecast comes courtesy of The 2014 Old Farmer’s Almanac, available in digital or print on our Web site now—or, in your local store!

According to the newest edition of North America’s oldest continuously published periodical, a decline in solar activity combined with ocean-atmosphere patterns in the Pacific and Atlantic will result in below-normal temperatures and above-normal snowfall during most of the winter across much of the United States.

“This winter is shaping up to be a rough one,” says Janice Stillman, editor of The Old Farmer’s Almanac. “Sweaters and snow shovels should be unpacked early and kept close by throughout the season. The good news is that the extra precipitation—which will fall as rain or snow depending where you are—will help with any drought issues left over from the summer.”

 

[rekees4300]

Farmers Almanac warned of a very cold winter, and that is just what we got.

The Wooly Worms nailed it!

Official Wooly Worm Winter Forecast | Weather - WLKY Home

 

[teejk]

All our President can do is talk about Health Care and Immigration Reform. This will turn into a Multi Billion Dollar event and no mention.

He'll blame GW Bush or FoxNews. I read on the industry's home page that we now export 20% of our propane (up from 5% a year or 2 ago). My goodness...a not so stable product delivered to a port to be loaded onto a ship that has to go on the high seas and then off loaded onto trucks to get to the final destination. Hard to believe that makes economic sense to anybody in the supply chain.

 

[PastTense]

Good news for prices in Iowa:
"Propane prices across the state continued to retreat, pulling down to a statewide average of $3.59 a gallon, a survey today showed.

On Wednesday, propane prices were at $3.78 a gallon and last Monday, they were $4.71 a gallon.

Harold Hommes, a market analyst at the Iowa Department of Agriculture, said supplies appear to be improving, with two major suppliers no longer restricting access to propane."
http://blogs.desmoinesregister.com/...ng-back-to-3-59-a-gallon-survey-shows/article

 

[teejk]

Good news for prices in Iowa:
"Propane prices across the state continued to retreat, pulling down to a statewide average of $3.59 a gallon, a survey today showed.

On Wednesday, propane prices were at $3.78 a gallon and last Monday, they were $4.71 a gallon.

Harold Hommes, a market analyst at the Iowa Department of Agriculture, said supplies appear to be improving, with two major suppliers no longer restricting access to propane."
http://blogs.desmoinesregister.com/...ng-back-to-3-59-a-gallon-survey-shows/article

Deja vu isn't it? Get the prices way up so when they do come down a little, people are happy. They forget that $3.78 is still more than double what they paid last year (which was hardly a "tropical" winter either). I recall that's how gasoline got to $3+/gal.

 

[teejk]

site hiccup resulted in a duplicate. sorry!

 

[ovrszd]

Deja vu isn't it? Get the prices way up so when they do come down a little, people are happy. They forget that $3.78 is still more than double what they paid last year (which was hardly a "tropical" winter either). I recall that's how gasoline got to $3+/gal.

Ain't that the truth. I figure the supply will improve before the price drops, which will cause people to freak out and fill their tanks at inflated prices as well. Told my Mom's supplier to only add 100 gallon at a time as needed until I tell them different.