09.13.2024 Energy
Sep 17, 2024
9-13-24
As I write this the price of crude is sitting just under $70 per barrel which equates to the lowest price of diesel fuel we have seen since October 2021. Hurricane Francine is doing her best to raise the price of crude as oil producers in the Gulf had to shut in a significant amount of oil production, thankfully for consumers Francine isn’t doing much damage and oil drillers are working at getting production back online. Gasoline prices are also the lowest we’ve seen in 3 years, prices at the pump are starting to show up under $3 per gallon. The Democrats will likely take credit for this as we near election time but weaker demand especially in the US and the always important China are the main drivers behind lower pricing, neither side of the political landscape should take credit. Chinese imports of crude rose in August however they are down 7% vs last year at this time, that’s a big number! Higher supply has also contributed to the recent price drops.
Propane is following suit; good supply low demand and low exports have propane trading flat to lower the last few days. As it stands there is nothing in the headlines to imminently raise Energy prices. I would caution all to not fall asleep on the Energy market though. With expected interest rate decreases on the horizon, Hedge fund buyers’ current low ownership likely to change moving forward, and typical US seasonal demand for harvest not far behind, common sense would say this is a good buy point and higher pricing most likely is part of our not-so-distant future. Make sure your tanks are full now as mother nature seems to be accelerating the start of harvest!
Thank you for reading as always please reach out to us with all questions and Energy needs!
Bill Pelzel
CRC Energy Manager
As I write this the price of crude is sitting just under $70 per barrel which equates to the lowest price of diesel fuel we have seen since October 2021. Hurricane Francine is doing her best to raise the price of crude as oil producers in the Gulf had to shut in a significant amount of oil production, thankfully for consumers Francine isn’t doing much damage and oil drillers are working at getting production back online. Gasoline prices are also the lowest we’ve seen in 3 years, prices at the pump are starting to show up under $3 per gallon. The Democrats will likely take credit for this as we near election time but weaker demand especially in the US and the always important China are the main drivers behind lower pricing, neither side of the political landscape should take credit. Chinese imports of crude rose in August however they are down 7% vs last year at this time, that’s a big number! Higher supply has also contributed to the recent price drops.
Propane is following suit; good supply low demand and low exports have propane trading flat to lower the last few days. As it stands there is nothing in the headlines to imminently raise Energy prices. I would caution all to not fall asleep on the Energy market though. With expected interest rate decreases on the horizon, Hedge fund buyers’ current low ownership likely to change moving forward, and typical US seasonal demand for harvest not far behind, common sense would say this is a good buy point and higher pricing most likely is part of our not-so-distant future. Make sure your tanks are full now as mother nature seems to be accelerating the start of harvest!
Thank you for reading as always please reach out to us with all questions and Energy needs!
Bill Pelzel
CRC Energy Manager