I wanted to first wish everyone a safe Labor Day weekend. I know the weekend is not like usual, but I hope everyone can get outside at some point and enjoy some end of summer. Crude prices have ended the week lower than where they started. WTI is flirting with breaking below $40/barrel. The main driver is lack of demand on the horizon as summer ends. The US economy continues to drag and until a vaccine is distributed, we just don’t see how the US can fully bounce back. China’s demand is a bit inflated and lots of worry is hitting the markets going into flu season. Although the US is looking at inflation which drives crude prices higher, the demand worries are weighing at a greater level.
In local retail news, gasoline and diesel prices will probably start to drop after Labor Day as the drop in cost blends into the market. I expect to see some lower gasoline prices next week. Diesel retail prices are still very good in value and don’t expect to see much of a change just yet.
Propane prices have remained somewhat calm, but supply builds continue to put a lot of potential downward pressure on future pricing. Depending on the level of cold this winter. Contract and board pricing will probably remain very close.
If you have any questions, comments, or concerns, please feel free to give us a call.