01.27.2022 Energy Tidbits
Feb 02, 2022
Hello and welcome to the first edition of what will be called Energy Tidbits. At CRC we strive to make sure our customers are educated and updated on the Energy market complex as well as the goings on at CRC in the Energy division. The initial plan is to post Energy tidbits weekly on the CRC website.
Currently, Energy prices are maintaining recent strength, crude oil sits over $85 per barrel which is a 7 year high. A couple factors supporting the crude oil price is the fact that Hedge Fund traders are heavily investing in Crude oil futures which typically causes a price increase. The second factor I will mention is OPEC production has been missing monthly quotas, in November of 2021 OPEC produced approximately 650,000 BPD (Barrels Per Day) less than their target. Simply stated as global oil demand continues to recover from the initial covid lockdowns supply has become tight supporting crude oil values.
These high oil prices also have some countries cashing in on their crude stocks for profit. This could result in low global capacities causing oil prices to reach the record highs seen in 2008. It appears we are in for a volatile 2022. If you have not filled and/or contracted diesel and gasoline for 2022 please consider doing so as analysts currently see no reason for a downwards price correction.
As we work through the coldest part of winter please keep a close eye on your propane and fuel oil tank levels, consumption is definitely up with the recent below zero temps. Also, please consider keeping the path to your propane tank shoveled clear of snow and ice, our propane Bobtail drivers greatly appreciate this!
If you are in need of Bulk Lube oil and DEF deliveries, please contact either Energy office to get on the list, as always we will be offering a spring bulk/package oil and grease sale. More details to come.
Thank you,
Bill Pelzel
Currently, Energy prices are maintaining recent strength, crude oil sits over $85 per barrel which is a 7 year high. A couple factors supporting the crude oil price is the fact that Hedge Fund traders are heavily investing in Crude oil futures which typically causes a price increase. The second factor I will mention is OPEC production has been missing monthly quotas, in November of 2021 OPEC produced approximately 650,000 BPD (Barrels Per Day) less than their target. Simply stated as global oil demand continues to recover from the initial covid lockdowns supply has become tight supporting crude oil values.
These high oil prices also have some countries cashing in on their crude stocks for profit. This could result in low global capacities causing oil prices to reach the record highs seen in 2008. It appears we are in for a volatile 2022. If you have not filled and/or contracted diesel and gasoline for 2022 please consider doing so as analysts currently see no reason for a downwards price correction.
As we work through the coldest part of winter please keep a close eye on your propane and fuel oil tank levels, consumption is definitely up with the recent below zero temps. Also, please consider keeping the path to your propane tank shoveled clear of snow and ice, our propane Bobtail drivers greatly appreciate this!
If you are in need of Bulk Lube oil and DEF deliveries, please contact either Energy office to get on the list, as always we will be offering a spring bulk/package oil and grease sale. More details to come.
Thank you,
Bill Pelzel