02.09.2024 Energy Update

Feb 09, 2024
As you all know from my previous articles it is not often I am able to confidently make a strong recommendation as to when to purchase and or contract energy needs. Now I will gamble and go ahead with recommending that if you have not filled your diesel storage tanks and forward contracted at least 50% of your 2024 fuel needs, it is time to act. As I write this news of Israel rejecting a proposed ceasefire off from Hamas has oil prices on the rise. US Secretary of State Anthony Blinken has stated there is still room for negotiation toward an agreement so all hope is not lost yet there’s nothing holding prices back from this news.

Another recent issue affecting current crude and spot pricing is the power outage that shut down BP’s Whiting, Indiana refinery, this is the largest refinery in the Midwest producing 435 MB per day. Speculation is that this refinery may be down for up to 3 weeks, this has investors diving into crude oil causing our recent spike in prices.

The last bit of doom and gloom I will share is the fact that refineries across the US are still not fully recovered from the winter storm of a few weeks ago, there is speculation that some of these refineries took the opportunity to start seasonal maintenance due to the cold weather shut downs, this accounts for production numbers being down recently and adding support to prices.

Please reach out to one of our Energy offices to cover fuel needs for 2024, thank you for reading and thank you for your patronage.
Bill Pelzel
CRC Energy Manager
Filed Under: forwardfuelHamasinvestorsnegotiationpricingspotstoragetanks