As the coronavirus continues to spark worries of demand erosion across the world, crude prices actually gained a small percentage this week. The gains were mostly on the heels of the news that OPEC+ is going to cut production no matter what to keep WTI prices from falling into the basement. In addition, many believe that maybe the coronavirus is being overstated in market pricing. Regardless, crude prices increased a small percentage this week. The IEA is calling for crude consumption to drop in Q1 for the first time in years. Also, the crude oil inventories in the US continue to build. I believe we are taking a breather, but the crude market still looks very bearish.
Refined products increased in price this week on a temporary price spike due to a Mobil refinery fire down in Louisiana. The refinery is the 5th largest in the US. Gasoline prices jumped almost 10 cents/gallon! However, retail prices in our market DROPPED in price! Go figure 🙂 Diesel prices gained a bit in cost, but not much movement at the pump.
Propane prices continue to remain very bearish. Our national inventories are at record levels and even with the current demand increase, we don’t expect to see propane values increase at all over the coming months. We believe that propane values will be very attractive over the next year.
As always, if you have any questions, comments, or concerns, please feel free to give us a call.