I hope this message finds everyone safe and sound coming out of the coldest weather experienced in 30 years. Our company worked overtime and extra hard to keep everyone safe. If the temperature climbs to over 40 degrees this weekend, it will be an 80 degree swing in 48 hours!!! Regardless, I appreciate everyone’s patience as we worked in extreme temps to care for our customers. And a special hank you to the customers who worked with us to help with spreading out deliveries to make sure those in emergency situations were taken care of you. Your honesty and willingness to help was very much appreciated!
In world news, crude oil prices climbed 18% in January to start the year as I expected. Crude oil prices were very undervalued to start 2019. Now we are carving out a range of $50-55/barrel WTI until a few things flush out. OPEC+ and their crude cuts will be under scrutiny in the coming months. Mostly we need to see Russia stepping up to their commitments. China’s economy is continuing to contract so the news is very bearish for crude prices. But the contraction could bring China to the negotiating table on a trade deal which would be very bullish for crude. Here in the US we just don’t stop pumping crude. And the FED is probably deciding to hold off on rate increases which would hope to spark more demand in crude in relation to the devaluing of crude prices. So February is going to be an interesting month for watching data. I think after this month we will have a better idea as to where crude prices might be heading. More to come.
In local news, gasoline prices are starting to pop up above $2/gallon. I expect to see the trend continue as gasoline cost basis in our area jumped higher this week. Diesel prices continue to climb as well. I expect to see diesel prices at the pump continue to rise as well.
Propane prices have remained stable with high production and high demand. Propane is in a spot of homeostasis. So if demand erodes or production quits, hold on. Things could change quickly. For now, please make sure your driveway is clean and clear to make sure we are able to safely and efficiency deliver propane to your house.
As always, if you have any questions, comments, or concerns, please feel free to give us a call.
Jon Crawford – Pres.