Good morning!
Well, warmer temps are finally on the way. And by warmer I mean at least the 30’s! 🙂 Propane supplies in Wisconsin have been tight but are not at an emergency status. Our neighbors in Minnesota and Iowa are in the middle of a crisis. There is no propane available in those states. There is more than average levels of propane in Conway Cavern storage, but propane can’t be shipped as fast as it’s going out. There is no worry of running out of propane like in 2014. The issue is pipeline and train distribution. Even if there were 500 more semi trucks on the road, the situation would be the same. Corn drying demand along with an early cold snap caused supplies in Minnesota and Iowa to deplete quickly. Natural Gas companies had to shut off corn dryers because even the Natural Gas companies could not keep up with demand. Corn drying is at a halt in Iowa where there is still 50% of the corn left to dry! Regardless, Crawford Oil and Propane is in good shape. The supply tightness will hopefully start to ease in the coming weeks. Because there is truly no shortage of propane, prices are remaining fairly stable. There is no need to panic that a massive price spike like in 2014 is coming.
In other news, crude oil prices are continuing on their narrow trading path between OPEC talking about cutting, China and the US reaching a trade deal, and the world economies slowing down affecting demand. I still don’t see much of anything happening for crude prices anytime soon.
Local prices of gasoline have gone higher due to a refinery issue at the Phillips 66 Wood River Refinery. Gasoline stocks will be short for some time, hence the higher price at the pump. By Thanksgiving I expect to see prices ease back just in time for the holidays.
As always, if you have any questions, comments, or concerns, please feel free to give us a call.
Best regards,
Jon Crawford