Happy Friday. I hope this message finds you well. OPEC+ and UAE finally reached a supply agreement to allow UAE to increase their base crude level supply numbers starting in April of 2022. So at this point, OPEC+ looks united to continue increase output from now through 2022. Crude prices softened a bit on the news but were kept supported by another larger than expected draw in US crude oil inventories. As jet fuel demand and gasoline demand continue to skyrocket, diesel demand is lagging. Although demand for crude in the US seems to be strong, around the world the delta variant from COVID is slowing down many countries from full economic recovery. Even in the US, the delta variant is adding a new variable as cases are up in every state. The markets are a bit spooked of an economic slowdown going into the Fall, so crude prices look to close this week lower than last week. For now, all eyes will be on the delta variant in the US to see if we peak in August before school starts.
In local news, gasoline and diesel retail prices have taken a breather. With crude prices easing a little, I expect current pricing on the street to hold for a little while.
Propane prices continues to hold tight as inventory levels are lackluster for this time of year. Currently our supply in the US is at the lowest level in over eight years. Until corn drying and next winter weather predictions start to roll in, I don’t see propane prices going down anytime soon. Our contract prices for next year have been released. Please call our office for contract pricing and current summer fill rates. We also highly recommend everyone getting a summer fill at this time.
As always, if you have any questions, comments, or concerns, please feel free to give us a call.