Customer Appreciation Day!!!

Good afternoon!

I wanted to make sure everyone was aware of our Customer Appreciation Day lunch tomorrow at Fort Bp location at 1901 Hwy 33 in Portage, WI.  We will be serving a free lunch between 11am-1pm tomorrow, including raffles and specials on items in store.  We will also have free koozies for everyone who attends!

WTI oil prices fell below $70/barrel this week as crude supplies in the US experienced a significant build in inventory.  In addition, the Delta variant is spooking the markets with fears of economic slowdown and schools not reopening.  Also, the private sector jobs report was half of expectations.  OPEC+ is worried about continued battles over production quotas as many nations have invested heavily in updated crude production facilities and want to be more in the market.  The last squabble in July might be signs of more to come.

In local news, the retail price for gasoline went above $3/gallon briefly in our market.  Gasoline and diesel retail prices are holding around $3/gallon and I don’t expect to see many changes in the coming weeks.

Propane prices are continuing to hold firm.  Contracts for the upcoming heating season are available.  And don’t forget to top off your tank at a slightly lower price this summer.

As always, if you have any questions, comments, or concerns, please feel free to give us a call.

Best regards,

Jon Crawford

Wild Roller Coaster Ride!

Good morning!

Crude prices are ending the week higher than where they started.  The week was the most volatile we have experienced in over six months.  Monday started with over a $5/barrel correction in crude price due to OPEC announcing an end to production cuts starting April 2022.  Many companies took profits on the news, rang the register, and waited to see happened next.  Crude prices are up almost 60% for the year, so it’s not a bad return on some positions for traders.  However, the market called a bluff and basically clawed back all the losses by the end of week.  Even though COVID is causing issues in many parts of the world and the US inventory report was very bearish, crude prices continued to climb.  Although the price did not fully recover from Monday’s bloodbath, WTI crude still settled back above $70/barrel.  I’m not sure we will see $100/barrel crude oil, but for now, crude prices seem supported at current levels.

Gasoline and diesel retail prices will probably remain pretty steady at the current rate.  Although cost dropped dramatically on Monday, the cost increased back to the starting point by the end of the week.  So unfortunately, there looks to be no change in site for prices at the pump.

Propane price is continuing to remain very bullish and well supported.  Inventories are over 25% lower than last year and we are now at the lowest inventory level in nine years.  Even though crude prices eased a bit, propane price did not give up much ground and quickly recovered.  I do not see much relief for propane prices on the horizon.  We will have to wait until after harvest before we really get a better feel on the winter supply situation.  However, Canada continues to have ample inventories so our rail terminals will be able to hopefully provide a much anticipated supply relief this winter.  Our contracts for the upcoming season are out.  Please feel free to call the office to sign up today!

As always, if you have any questions, comments, or concerns, please feel free to give us a call.

Best regards,

Jon Crawford

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