The hopes of passing a new Covid stimulus bill and the roll out of vaccines boosted oil prices this week. Even though demand in America seems to leveling off as unemployment remains high and consumer spending is dropping, the possibility of more stimulus is dragging down the dollar which causes crude prices to increase. The addition of Moderna’s vaccine and the rolling out of the vaccine from Pfizer is giving further future support for future oil prices. WTI crude prices are hovering near $50/barrel and I expect the market to stay inflated until at least year end. We will wait for January and see if there is any price relief from profit taking on the market.
In local markets, gasoline prices retail climbed above $2/gallon and diesel retail prices are inching closer to $2.50/gallon. I do not expect to see these prices come down before the end of the year. There are too many speculative issues holding prices firm.
Propane cost has risen almost 13 cents per gallon in December. Even though we are experiencing warm temperatures and low corn drying demand, our national inventory levels fell below last year’s levels this week due to record exportation that shows no signs of slowing. There could be a relief in prices come January if crude prices stay high and temperatures remain warm. This would cause exportation demand to halt and inventory levels to build quickly. But for those who contracted this winter, so far you are in good shape.
As always, if you have any questions, comments, or concerns, please feel free to give us a call.