I hope this message finds everyone well and ready for the weekend. Crude prices went on the positive this week on news that the US/China were going to FINALLY complete a major trade deal. The news, like usual, sparked a rally on crude and the stock market. Details of the possible deal included no new tariffs on China and relief on previous tariffs. WTI Crude was JUST about to break through $60/barrel when the news came that the current 25% tariffs on China will remain, however, no new tariffs will be applied. The news cooled off the crude market. WTI struggles to find the footing to leg higher above $60/barrel. Even the FED chimed in this week and said that they are planning on not raising rates which make crude prices go up. For now, it’s looking like crude prices are going to stay in a narrow range below $60/barrel.
In local retail news, gasoline and diesel prices are all over the map. Some markets are $2.49/gallon on gasoline and others within 15 miles are $2.19/gallon. The spreads are ugly and some markets are losing money. Diesel prices are all over the map as well depending on whether the diesel is treated for winter or not. Don’t let cheap diesel prices fool you! The retailer might not be blending for winter and we are finding that treatment is already needed on these single digit nights. Make sure to ask your local gas station how they are treating their diesel.
Propane supply has rounded the corner and getting much better. Prices have stabilized as well. We appreciate everyone’s patience over the past two months as we navigated one of the worst supply crunches since 2014. Our company has already made changes based on the experience this year to gain access to even more product during a possible supply crunch in the future. Anytime there is a major incident, I try to find the positive and improve. Please make sure if you are a call-in customer to call when your tank is above 30% to ensure an efficient delivery.
If you have any questions, comments, or concerns, please feel free to give us a call.