Another wild ride for crude prices this week. The week started off with crude prices skyrocketing higher on the announcement that Trump would delay additional Chinese tariffs. The news coincided with Saudi Arabia announcing another run at taking Aramco public and saying they will do whatever it takes to keep prices from going lower. But oh, what a difference a day makes. China responded by continuing to devalue their currency and markets got a little shaky. Then, the US reported large builds in crude and refined product inventories. As crude prices started to fall, the bond market displayed indications of a looming recession and the stock market along with crude prices cratered. We are now back to almost the low price of the year again in three days! I would expect Saudi Arabia to start hitting the airwaves again soon if this continues. I just don’t see them allowing WTI to fall below $50/barrel.
In local retail news, prices for gasoline and diesel are all over the map due to high fluctuations in cost and price spreads between terminals marketing either Chicago Spot or Group 3 Spot. I expect wild discrepancies on street prices of gasoline and diesel over the next month or two.
Propane prices continue to stay very low based on high volume of national inventory. Please take advantage of summer fill prices. With the potential for high corn drying demand and an additional export terminal coming on board in Q4, propane prices could start to swing up quickly by the end of the year. Please call our office or go online to place an order. If you have not contracted propane for the next heating season, I also suggest talking with our staff about options that might work for you.
If you have any questions, comments, or concerns, please feel free to give us a call!
Jon Crawford – Pres.