07.27.2023 Energy

Jul 27, 2023

Per the Energy Information Agency (E.I.A.) in this week’s national inventory report we saw diesel stocks decrease 200,000 barrels leaving us approximately 6 million barrels above the level last year at this time. Gasoline stocks decreased 800,000 barrels due to increased demand which puts us about 8 million barrels behind last year’s inventory at this time. Propane stocks increased to just short of 86 million barrels which is a staggering 25 million barrels above the 2022 report for this time period. Overall these are good numbers making it easy for those of us in the Energy business to fill inventory and provide supply to patrons. Having said that please consider getting your on farm storage tanks filled in advance of harvest, in my last edition of Energy Tidbits the price of crude oil was $73 per barrel, it now sits at just under $79 per barrel. Recently we have seen some strength in the Energy complex pricing as Hedge Fund traders have entered back into crude oil purchases causing this run up in pricing. Along with filling storage tanks consider purchasing a fixed forward contract to limit your exposure to any future unforeseen circumstances changing our pricing levels. Diesel fuel contracts are currently approximately .30 cents below what were offered as recently as last spring, while propane contracting is roughly .50 cents below last year’s prices. Are these the lowest prices we will see this year? No one knows, but we do know the price of crude oil and all finished energy products were predicted to be higher than they are at the moment, with harvest looming limit your risk and consider getting positioned for all of your needs!
Thank you,

Bill Pelzel
Energy Manager
Filed Under: BarrelsCrudeDemandDieselEIAGasolineHarvestInventoryOilStocks