Happy Monday!
I ran out of time last week to send out a quick update, however, not much happened in the world of crude oil. Last week crude oil markets were driven by global trade negotiations and wildfires in Canada. WTI price continues to hold a strong floor at $60/barrel. On June 5th, Trump and Xi Jinping were reported to have a positive discussion on resolving the trade war between both countries. Crude oil markets were well supported due to potential increased consumption in both the U.S. and China. Although OPEC has reported to increase production by 400k barrels per day, wildfires in Canada have shut down about 400k barrels per day of production. Therefore, the markets are currently experiencing a bit of an offset to the OPEC production increases. The EIA reported another draw of crude oil stockpiles. The past week inventories fell by 4.3M barrels. Currently, the U.S. inventories are 7% below the five-year average. Therefore, although the potential for an oversupplied market are in the cards, for now other
In local markets, the Chicago spot market continues to be volatile as predictions for summer demand season differ. In addition, supplies are tight in various markets. However, gasoline prices continue to fall. As you have noticed, retail prices of gasoline continue to drop. However, diesel prices continue to trade volatile, but very narrow. Therefore I don’t expect to see much change of on retail diesel prices.
Propane prices are also holding very steady. I do not expect to see any movement on propane retail prices unless crude oil prices fall hard below $60/barrel. I suggest that everyone tops off their propane tank at the current prices and contract some gallons for the upcoming heating season.
As always, if you have any questions, comments, or concerns, please feel free to give us a call!
Best regards,
Jon Crawford