01.15.2024 Energy
Jan 18, 2024
In the most recent EIA weekly inventory report we learned that crude oil stocks rose 1.34 million barrels, distillate (diesel stocks) were up 6.53 MB, gasoline stocks also rose 8 MB. Diesel inventories are at their highest level since September of 2021, these product stockpile increases are due primarily to low seasonal demand along with output/production growth. In 2024 analysts are predicting Global oil demand to increase almost 2 MB per day, offsetting this is the same analysts predicting efficient and constant production keeping pace with demand. At the moment I recommend a wait and see approach to positioning diesel needs, prices are lower than we’ve seen in months yet there is a realistic chance we could see some more spot and futures down side.
Propane markets have had a little upward price momentum recently as cold weather has finally set in. Propane stocks decreased -3.6 million barrels last week as demand was obviously up. Holding the price of propane from an even larger price increase is the fact that inventories remain at the 4th highest level on record for this time of year. I would not expect to see the price of propane to continue increasing significantly as the 8-14 weather outlook is calling for above average temps in our part of the country.
As always please reach out to any of our Energy offices for more pricing detail or intel.
Thank you,
Bill Pelzel
Energy Manager CRC
Propane markets have had a little upward price momentum recently as cold weather has finally set in. Propane stocks decreased -3.6 million barrels last week as demand was obviously up. Holding the price of propane from an even larger price increase is the fact that inventories remain at the 4th highest level on record for this time of year. I would not expect to see the price of propane to continue increasing significantly as the 8-14 weather outlook is calling for above average temps in our part of the country.
As always please reach out to any of our Energy offices for more pricing detail or intel.
Thank you,
Bill Pelzel
Energy Manager CRC