08.22.2024 Energy
Aug 26, 2024
8-22-24
US Inventories
On Wednesday August 21st the EIA reported U.S. diesel inventories to 10% below typical seasonal averages, crude supplies came in about 5% below, while gasoline ended similarly below the seasonal average. All of this is despite U.S. crude oil production at a record 13.4 million BPD (barrels per day). Logic would say market prices should be rising, however due to the U.S. Bureau of Labor Statistics releases a revision to payroll data down 818K which is the largest downward revision since 2009, prices dropped! There remains a little downward price pressure because of this report as well as soft Global demand and the economic slowdown in China.
Propane supply is a touch above where we were last year as reports showed a nice inventory build this week. Propane prices remain flat because of this.
As we look forward it’s important to monitor this lower than typical crude oil supply and just as importantly Hedge Fund buyers being “short” crude oil positions. As prices remain at a weeks if not months low I wonder when the market will “pop”, common sense says Harvest demand or sooner! If your fuel barrels are not full, and you do not have any fixed forward contract you may want to reach out to your favorite CRC Energy office and take at least a partial position!
Our propane summer fill is ongoing, if your tanks have not been filled, they should be soon. If you have not inquired about contracting your corn dryer needs, I recommend you address that as well. Getting tanks full and planning for Fall/Winter needs helps us help you.
Thanks for reading and thank you for allowing CRC to serve your Energy needs!
Bill Pelzel
CRC Energy Manager
US Inventories
On Wednesday August 21st the EIA reported U.S. diesel inventories to 10% below typical seasonal averages, crude supplies came in about 5% below, while gasoline ended similarly below the seasonal average. All of this is despite U.S. crude oil production at a record 13.4 million BPD (barrels per day). Logic would say market prices should be rising, however due to the U.S. Bureau of Labor Statistics releases a revision to payroll data down 818K which is the largest downward revision since 2009, prices dropped! There remains a little downward price pressure because of this report as well as soft Global demand and the economic slowdown in China.
Propane supply is a touch above where we were last year as reports showed a nice inventory build this week. Propane prices remain flat because of this.
As we look forward it’s important to monitor this lower than typical crude oil supply and just as importantly Hedge Fund buyers being “short” crude oil positions. As prices remain at a weeks if not months low I wonder when the market will “pop”, common sense says Harvest demand or sooner! If your fuel barrels are not full, and you do not have any fixed forward contract you may want to reach out to your favorite CRC Energy office and take at least a partial position!
Our propane summer fill is ongoing, if your tanks have not been filled, they should be soon. If you have not inquired about contracting your corn dryer needs, I recommend you address that as well. Getting tanks full and planning for Fall/Winter needs helps us help you.
Thanks for reading and thank you for allowing CRC to serve your Energy needs!
Bill Pelzel
CRC Energy Manager