Thursday , December 2 2021
Home / Zerohedge / IHS Market Warns Of “Armageddon” For US Propane Market 

IHS Market Warns Of “Armageddon” For US Propane Market 

Summary:
IHS Market Warns Of "Armageddon" For US Propane Market  The expanding energy crisis is causing propane to rocket higher (read: here) 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 ...

Topics:
Tyler Durden considers the following as important:

This could be interesting, too:

Tyler Durden writes Fierce Taliban vs. Iran Clashes Break Out On Afghan Border

Tyler Durden writes Dying COVID-19 Patient Recovers After Court Orders Hospital To Administer Ivermectin

Tyler Durden writes Cook County Blows Past 1,000 Homicides This Year In First Since 1994

Tyler Durden writes France Deploys Military Police To Caribbean Islands Amid Unrest Over Vaccine Mandate

IHS Market Warns Of "Armageddon" For US Propane Market 

The expanding energy crisis is causing propane to rocket higher (read: here) as supplies dwindle to below seasonal levels as research firm IHS Markit Ltd. warns of "armageddon" during the Northern Hemisphere winter. 

IHS Market Warns Of

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. 

IHS Market Warns Of

Heating degree days are set to soar by month end, suggesting the heating season has already begun. 

IHS Market Warns Of

Ang said 1Q22 prices are already above later-dated supplies that "it may indicate players are preparing for propane-market armageddon." He warned some areas of the country might be prone to shortages this winter. 

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 global energy crunch threatens to derail the global economy. 

IHS Market Warns Of

In a separate report, the Energy Information Administration (EIA) expects households that use propane and heating oil this 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.

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. 

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.

It's only now that the Biden administration wishes there was global warming. 

Tyler Durden Tue, 10/19/2021 - 19:05
Tyler Durden
Tyler Durden (a pseudonym) represents the idea that a return to truly efficient markets is a possibility and a necessity. After having experienced the inner workings of capitalism at various asset managers and advisors, Tyler believes that the current model is flawed and a deleveraging at every level of modern society is needed to reinspire the fundamental entrepreneurial spirit. Visit his blog: ZeroHedge (http://www.zerohedge.com/)

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.