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THREE REASONS THE PRICE OF PROPANE WILL NOT GO DOWN
Everyone keeps hoping that the price of oil will go down. As a
propane user you know, the price of propane generally tracks the price of oil. As a propane user, you hope the price of propane will go down. Neither the price of oil nor the price of propane will go down: here are three reasons why:
1.) Saudi Arabia has no more usable excess capacity in its proven reserves. The crude oil pumped as excess capacity is from the very bottom of the oil fields - with a high sulfur content and many particulates, so it is more like tar than fuel. It is difficult and costly to refine, hence difficult to market. So on the one hand, we are running out of natural resource.
2.) Only a complete economic collapse will reduce demand for oil. The heroic efforts of the central banks to head off this collapse have succeeded, so such a collapse is no longer imminent.
3.) China and India's ever-growing appetite for oil will not fall off, even in a recession. In these countries, every car that goes on the road stays on the road, and new cars are added to the road every day. Millions of people in China and India are getting off their bicycles and into cars every year. So world-wide command will only increase.
With supply at best stagnant and demand increasing apace, the basic laws of economics dictate that the price of oil, and with it the price of propane, will only rise. Those who purchase propane for industry as a living, are buying now to keep the price of propane at bay. Now you can protect yourself from the rising price of propane with a pre-buy of pure HD5 propane from Thrifty Propane. Today's price stays the today's price no matter where the prices go in the future.
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