I hope this message finds you safe and warm. We are in the midst of the coldest week in winter and so far we are surviving without too many hiccups. Our staff and driving team have been working overtime to ensure everyone stays warm. We appreciate everyone’s patience as we continue into next week. Hopefully temperatures warm up and we can all catch some relief from the bitter cold.
Crude oil prices continue to rise as vaccine rollouts ramp up and the economy looks to pop this year. In addition, the continued talks of stimulus and printing more money is supporting higher crude prices. There was talk of Iran and the US negotiating a potential nuclear deal again this week. If a deal is struck and sanctions on Iran are lifted, there is a potential for crude prices to drop. But talks are just beginning and I don’t expect any traction until summer. For now, higher crude prices look like they are here to stay.
The rise in crude prices have continued to hold retail prices higher at the pump. I do not expect to see gas or diesel prices drop at the pump for the remainder of the month.
Propane supplies have been tight but manageable. Rail cars have been delayed and long lines at terminals have caused hiccups in distribution. However, with warmer temps coming I believe the short squeeze on wet barrels of propane is starting to unwind. In addition, the supplies at the main hub in Conway look like they will hold. Record exports have dropped a bit do to the extinction of the arbitrage economics with Europe and Saudi Arabia. I am hopeful for some price relief in March. As a reminder, please make sure to keep your driveways clear and salted to ensure a safe and efficient delivery of your propane. We appreciate your help as we are entering the final lap of winter.
As always, if you have any questions, comments, or concerns, please feel free to give us a call.