Crude oil prices dropped dramatically this week as Chinese/US talks looked to stall. In addition, the impeachment proceedings and the looming talks around a recession continued to put downward pressure on crude prices. However, by the end of the week there was a missile attack on an Iranian crude ship, OPEC announced that they will probably cut more crude in 2020, and Trump said that China trade talks are moving along just fine. Crude prices found some great support to end the week and ended up about where we started the week. WTI crude continues to stay under $55/barrel which is very low. The EIA revised their forecast for WTI prices next year to remain around the same price as today for another year. If so, cheap energy can continue to try and keep the economy afloat.
In local retail news, gasoline prices continue to remain under $2.49/gallon and diesel prices are capped under $2.90/gallon. Harvest is slowly starting and talks of tight diesel supply are starting to bubble up. If so, I could see a price spike in diesel depending on the demand during harvest. As of now, with how wet everything is, we expect harvest to be long and slow.
Propane prices found support as an early cold and wet October is showing greater heating demand as well as high demand for crop drying. Board prices have increased and I expect to see maybe another increase next week. It is still not too late to lock in your heating price for this season!
As always, if you have any questions, comments, or concerns, please feel free to give us a call.