I hope this message finds everyone safe and well. I didn’t know that I asked for a pogo stick this Christmas, but that’s what I got! 🙂 Crude prices continue to bounce up and down the past week. WTI jumped back up over $70/barrel due to most traders shrugging off omicron as a threat to the economy. Well, then this week omicron is looking to spread like wildfire, some countries are putting in economic shutdowns and slowdowns, and the FED announced a faster-to-market rate increase next year. WTI prices peaked at about $75/barrel this week but are now looking to close near $70/barrel. The bullish factors playing on crude prices are Russia/Ukraine relations, OPEC+ and their production quotas, and COVID-19 treatments hitting the market along with omicron being less in severity of disease. Only time over the next few weeks will flush out these bullish potentials. For now, I eating Christmas cookies while I ride my new pogo stick on crude prices into the end of 2021!
Local retail prices on gasoline and diesel have stabilized and I don’t see much movement going into the year end. I believe most consumers in Wisconsin will pay under $3/gallon on gasoline and near $3.25/gallon on diesel until the new year.
Propane prices have also found a floor and stabilized as we enter the depths of winter. Cold winter is being predicted from here on out. In fact, our winter is mirroring 2017 which had two polar vortexes in the first quarter of the new year! So don’t let your guard down with this recent warm snap! I think propane prices will start to recover and go higher in the first part of the new year as supply chains and logistics could get occasionally dodgy with cold snaps. As a reminder, please make sure to keep your driveway salted and a clear path to your propane tank to ensure an efficient and safe delivery this winter!
As always, if you have any questions, comments, or concerns, please feel free to give us a call!