08.10.2022 Energy

Aug 10, 2022
In a somewhat surprising move Russia has resumed pumping oil through Ukraine, this naturally takes some pressure off of the oil market. Also assisting in holding down energy prices is the US inflation rate remaining at a 40 year high which could trigger another significant interest rate hike in September. This week’s EIA inventory report showed in build in both crude oil and diesel with a gasoline draw. On the flip side we need to be cautious in anticipating significantly lower energy pricing as the market is nearing an “over sold” position from investors standpoint. Typically an “over sold” markets spurs investor to purchase crude oil which in turn can drive prices higher.
Propane has been flat to lower as we’ve seen some nice inventory builds, obviously as we move closer to fall/winter demand picks up and we anticipate prices to climb.
All in all proceed cautiously at the moment as we see how all of these details play out.
Thank you,
Bill Pelzel