04.20.2023
Apr 21, 2023
4-20-23
In this week’s EIA report we saw crude oil stocks decrease yet we remain above levels reported last year in the same time period. Same thing for diesel stocks, a decrease yet also above last year’s volumes. Gasoline inventories increased from the previous week report and are currently below last year’s levels. Propane saw a fairly significant inventory draw for this time of year, no surprise as other than a few unseasonably warm April days we have been below seasonal temp averages most of the last month plus. An inventory report laced with mainly product draws would typically signal higher energy prices, not at the moment as inflation fears and another expected interest rate hike by the Feds is currently putting downward pressure on energy products. As I write this the price of crude oil is a touch over $77 per barrel, in the last two weeks we were above $82 for a bit and obviously have worked our way lower. Some analysts predict crude to hover around $90 as we progress through spring and summer, I agree with them especially if OPEC indeed cuts production as they have stated. Short and sweet we need to continue to monitor the ultra-volatile markets and be prepared to pounce for any 2023 and a portion of 2024 needs if it fits your plan.
Thank You,
Bill Pelzel
Energy Manager
In this week’s EIA report we saw crude oil stocks decrease yet we remain above levels reported last year in the same time period. Same thing for diesel stocks, a decrease yet also above last year’s volumes. Gasoline inventories increased from the previous week report and are currently below last year’s levels. Propane saw a fairly significant inventory draw for this time of year, no surprise as other than a few unseasonably warm April days we have been below seasonal temp averages most of the last month plus. An inventory report laced with mainly product draws would typically signal higher energy prices, not at the moment as inflation fears and another expected interest rate hike by the Feds is currently putting downward pressure on energy products. As I write this the price of crude oil is a touch over $77 per barrel, in the last two weeks we were above $82 for a bit and obviously have worked our way lower. Some analysts predict crude to hover around $90 as we progress through spring and summer, I agree with them especially if OPEC indeed cuts production as they have stated. Short and sweet we need to continue to monitor the ultra-volatile markets and be prepared to pounce for any 2023 and a portion of 2024 needs if it fits your plan.
Thank You,
Bill Pelzel
Energy Manager