Good afternoon,
Crude prices pulled back from recent highs due to massive builds in inventories here in the US this week. In addition, there are a lot of global concerns on demand and how Russia will react to the next OPEC meeting. The markets are very ripe for crude supplies to turn to surplus, so the fear has put a quick profit taking reaction in play. The recent pullback is kind of the calm before the storm. I think we are experiencing a breather in the moment. If Russia pulls out of the deal, we could easily see crude prices fall $5-7/barrel. If OPEC steadies with cuts, I think the markets will try a new high. For now, it’s the yo-yo effect between $62-65/barrel WTI. More will develop in the coming weeks.
Retail prices on gasoline and diesel have balanced out. I expect to see current pricing at the pump hold over the coming week. Refinery maintenance in Chicago has experienced some relief and supplies are flowing again.
Propane prices have continued their detachment from crude. Right now, our retail price is the lowest it has been in over a year! If you are in need of propane, now would be a great time to buy! Contract prices for next heating season are looking to be at or lower than this current year’s contracts. More info will continue to be released in the coming weeks.
As always, if you have any questions, comments, or concerns, please feel free to give us a call.
Best regards,
Jon Crawford