04.25.2024 Energy

Despite a reported 6.4 MB draw in crude oil stocks and on-going world tension the Energy sector has been mostly flat to lower as of late. Adding to the oddness of this is the fact that US commercial crude oil inventories are 25 MB below this time last year and 35 MB lower than the 5-year average for this time of year. Logic would tell us crude oil along with diesel fuel prices should be climbing higher based off this info. Analysts are stating that stellar production coupled with lower than anticipated demand are the primary reasons prices have remained flat. Processing these details tells me we are at a decent buy point when considering positioning for this upcoming fall usage, however I don’t feel it’s time to hit the panic button. How’s that for non-committal?! In all seriousness my previous paragraph is a great example of the volatility of not only the Energy market but all commodities, on a moments notice things can change dramatically, limit risk buy if the price fits that particular day and don’t look back.

As for propane I can tell you National inventories are above this time last year and last year we had record inventory levels production is also expected to be at maximum levels! One would think the bottom should fall out right? Wrong! At this point experts are predicting minimal propane price downside from current values; I would like to see us exit what was allegedly the winter season (our sales say different) a little further while paying close attention to production/demand/export stats before jumping in and purchasing propane for the upcoming fall and winter.

Happy safe planting thanks for reading!
 
Bill Pelzel
CRC Energy Manager