09.15.2022 Energy

As I write todays version of Energy tidbits I’ve realized the information I’m providing couldn’t be more opposite of what I spoke about in my last article on August 25^th. No surprise as a recent study showed the daily Energy product pricing is 3 times more volatile as what we normally contend with. In any event the big news of today is it appears a US Railroad strike has been avoided. Currently crude oil is trading down over $2.00 with gas and diesel prices also plummeting. The current price of crude oil is sitting at just under $86, a couple other factors supporting the recent drop in prices is a lack of demand out of China as they recently have imposed more covid lockdowns, along with this is news that globally refineries have had an uptick in production. The last major factor I will mention as we see prices drop is that speculators are exiting crude oil at the moment which is as big of a factor as any of the previously mentioned items, the main reason for this is the US dollar strength, as the US dollar finds strength speculators sell long positions. All of this is good news for consumers as we transition to locking in 2023 Energy prices, as things evolve our primary focus should be “how low will it go”!
 
On the propane side of things the EIA reported yesterday that US propane stocks increased 3.76MM barrels versus an anticipated build of 1.78, this is also good news for consumers! The price of propane has been flat to lower for the last month or so and appears to be maintaining that position moving forward. If you have not positioned your propane needs for this fall there’s still time! Please reach out to either Energy office for pricing and terms.