06.27.2024 Energy
Jun 27, 2024
06-27-2024
Over the last couple weeks, we have seen oil prices slowly climb higher, this can be attributed to OPEC’s announcement they will not reduce production cuts. Geopolitical tensions, most specifically, the ongoing Israel-Hamas saga along with the Russia-Ukraine conflict are also supporting this recent upward price trend for oil. These two factors are outweighing the U.S. Energy Information Agency showing a surprise 3.6 MB jump in crude stocks this week vs. an expected 2.9 MB draw. One would think prices should drop based solely off this inventory report, however global tensions and rising demand in Asia and India have negated any current downside possibility. My continued recommendation is to strongly consider filling tanks and at least layering in some fixed forward contract for fall if you have not already done so.
Propane has also seen some recent price strength as it attempts to follow crude oil higher. Propane prices are approximately .10 cents per gallon lower than at this time last year. We are in the heart of the seasonal buy spot for propane and analysts do not feel lower pricing is imminent which makes a case for taking at a minimum a partial position on your propane needs. Currently we are actively summer filling tanks and have contract pricing for next season available. Please reach out to us for more details on all Energy spot and contract pricing.
Thanks for reading and thank you for the business you have granted us!
Bill Pelzel
CRC Energy Manager
Over the last couple weeks, we have seen oil prices slowly climb higher, this can be attributed to OPEC’s announcement they will not reduce production cuts. Geopolitical tensions, most specifically, the ongoing Israel-Hamas saga along with the Russia-Ukraine conflict are also supporting this recent upward price trend for oil. These two factors are outweighing the U.S. Energy Information Agency showing a surprise 3.6 MB jump in crude stocks this week vs. an expected 2.9 MB draw. One would think prices should drop based solely off this inventory report, however global tensions and rising demand in Asia and India have negated any current downside possibility. My continued recommendation is to strongly consider filling tanks and at least layering in some fixed forward contract for fall if you have not already done so.
Propane has also seen some recent price strength as it attempts to follow crude oil higher. Propane prices are approximately .10 cents per gallon lower than at this time last year. We are in the heart of the seasonal buy spot for propane and analysts do not feel lower pricing is imminent which makes a case for taking at a minimum a partial position on your propane needs. Currently we are actively summer filling tanks and have contract pricing for next season available. Please reach out to us for more details on all Energy spot and contract pricing.
Thanks for reading and thank you for the business you have granted us!
Bill Pelzel
CRC Energy Manager