Crude prices have retreated from the highs of last week. Economic data in the US was not very strong this week. Unemployment remains high with additional jobless claims filed. The FED is looking at holding rates very low. The earnings from most companies, other than Big Tech, were awful in Q2. The coronavirus is spreading to more states as it weakens in others. Most states are going to stricter mandates and fears of economic slowdown are back on the table. In addition, the ability for schools to safely open in person across the country is looking like it will be very limited. The US inventories of crude oil experienced quite a draw this week, but many believe it was a correction from last weeks report. Around the world, Europe is possibly looking at a second wave of the coronavirus. But the continued hopes of treatments and the race for vaccines are keeping markets steady. So for now, $40/barrel on WTI seems to be the floor. Next week will be a possible directional test and prediction for crude prices in August. More info to come.
In local news, Chicago pricing differentials fell on the August contract expiration. Gasoline retail prices have fallen back below $2/gallon and diesel retail are near $2/gallon. Given the fundamentals in Chicago and crude bouncing along at $40/barrel, I don’t expect to see much movement on retail prices in the coming week.
Propane prices are still at very good value and we highly recommend that everyone fill their propane tanks now. We also recommend writing a contract for the 2020-2021 heating season. Contract prices are lower than last year and summer fill pricing is very attractive. Please call our office today for more info.
As always, if you have any questions, comments, or concerns, please feel free to give us a call.