Good morning,

I hope this message finds everyone safe and well heading into the holiday week.  I wanted to take this moment and thank everyone for all their support this past year.  We have navigated many crisis situations over the years, but none quite like a global pandemic.  Your kind messages, gifts to our employees, and nice words on the phone have gone a long way to keep our company motivated and focused throughout these trying times.  I hope you all are able to spend some safe time with family celebrating Christmas, reflecting back on this year, and also looking forward to better times in 2021.

From everyone at Crawford Oil and Propane, Merry Christmas and Happy Holidays!

Best regards,

Jon Crawford

Good afternoon,

The hopes of passing a new Covid stimulus bill and the roll out of vaccines boosted oil prices this week.  Even though demand in America seems to leveling off as unemployment remains high and consumer spending is dropping, the possibility of more stimulus is dragging down the dollar which causes crude prices to increase.  The addition of Moderna’s vaccine and the rolling out of the vaccine from Pfizer is giving further future support for future oil prices.  WTI crude prices are hovering near $50/barrel and I expect the market to stay inflated until at least year end.  We will wait for January and see if there is any price relief from profit taking on the market.

In local markets, gasoline prices retail climbed above $2/gallon and diesel retail prices are inching closer to $2.50/gallon.  I do not expect to see these prices come down before the end of the year.  There are too many speculative issues holding prices firm.

Propane cost has risen almost 13 cents per gallon in December.  Even though we are experiencing warm temperatures and low corn drying demand, our national inventory levels fell below last year’s levels this week due to record exportation that shows no signs of slowing.  There could be a relief in prices come January if crude prices stay high and temperatures remain warm.  This would cause exportation demand to halt and inventory levels to build quickly.  But for those who contracted this winter, so far you are in good shape.

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

Best regards,

Jon Crawford

Good morning,

Happy Friday!  Although unemployment claims rose last week and Congress failed to pass a COVID stimulus bill, crude oil prices climbed to the highest level since March 2020.  Brent crude broke over $50/barrel and WTI held above $45/barrel.  The driver of crude prices seems to be surrounding vaccine distribution, a weakening dollar, and unrest in the Middle East.  There was an attack on a small oil field in Iraq which is cause for concern as Israel has been trying to broker more peace deals in the area.  For now, the optimism of 2021 and the end of the pandemic is outweighing the immediate bearish signals for crude prices.  I have no idea what to expect going into the end of the year.  A part of me feels that as long as the vaccine news remains positive and the distribution continues, crude prices will hold near current levels and possibly move higher in 2021.

In local news, Chicago spot markets experienced a significant move higher on both gasoline and diesel.  I have not been able to discover the culprit, but I’m thinking there is a refinery maintenance issue that popped up somewhere in the Chicagoland refinery market.  I would not be surprised to see gasoline prices hit $2/gal going into Christmas.  However, as quickly as the increase came, it can drop just as much tomorrow.  Stay tuned.

Propane prices continue to hold steady even though the weather is an absolute scorcher of a December and January looks to be an inferno.  Exports of propane continue to be at record levels.  In fact, exports are so high right now that if the propane industry experienced a colder than normal temperature drop, we would see a record depletion of inventory.  One can only be hopeful that if winter ever returns in the next year or so that the pricing for exports becomes less attractive.  I do worry about our level of exports coupled with localized heating demand.  I have no concerns for this winter, but I will be watching close on the developments in 2021.

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

Best regards,

Jon Crawford

Good morning,

I hope everyone had a safe and happy Thanksgiving weekend.  Markets continue to pick up steam as we look to close out this terribly tough and exhausting year in 2020.  The Biden transition is moving along and so far none of the moves are causing too many alarms.  In addition, vaccines and more vaccines are coming out as distribution chains assemble.  Most experts are moving predictions from June to April as the month we will really start to breath relief.  OPEC+ has decided to increase production a bit starting in January, but the move seems somewhat acceptable as the world anticipates reopening.  All of the positive market and COVID news is placing a visible finish line out there for everyone to see.  And the anticipation is leading to excitement.  However, all the news is coming at a cost.  More than 100k Americans are hospitalized across the country for COVID.  That is the most hospitalizations for any disease since the the Spanish Flu.  And many more Americans are going to die.  So as we see the end to the pandemic coming closer and closer, please remember that there is a major human cost still on the horizon and most of that cost will land during the holidays.  I believe the next two months will be extremely difficult and bitter-sweet as we start to plan our lives post COVID while watching thousands of more Americans die.

Please be safe and smart out there.  We have already suffered through almost an entire year of this pandemic and thousands of American families are forever changed.  The finish line is on the horizon and I hope we can come together and finish as safe and strong as possible ready to move forward in 2021.

As always, if you have any questions, please feel free to reach out to us.

Best regards,

Jon Crawford