06.07.2023 Energy

Jun 07, 2023

Even though it’s been more than a month since my last Energy Tidbits the theme has not changed, actually it’s been the same story for over two years! Volatility, unprecedented price swings, and head shaking market reactions. At the moment the price of crude oil is just under $73.00 per barrel, in the last 3 weeks we’ve been as high as $80.00 and as low as approximately $62.00 which creates a marketing nightmare for those of us in the Energy complex. A couple headlines to pay attention to at the moment are that analysts are predicting global crude oil demand to increase through 2023 and 2024, Saudi Arabia has also announced they will cut production starting in July, lastly China looks to be potentially increasing crude purchases moving forward. All of these signs point to higher pricing as we move through summer making one think now is a good time to go all in on Energy purchases. Even though we are seeing diesel in particular at a retail price point not seen since the early stages of the COVID fiasco it’s not that easy. Continuing fears of a U.S. recession have slowed the upwards price momentum. What I can tell you is as stated prices are as low as we’ve seen in two plus years, downside price potential appears to be limited, and fall will be here in the blink of an eye. If our current prices are a fiscal fit to your operation call us to lock in a fixed forward diesel contract and don’t look back!

On the propane side of business we are gradually ramping up to begin our annual summer fill. Nationally propane inventories are well above last year and even above the 5 year average, because of this we have seen the price of propane soften up recently and are quite possibly in the heart of a propane buying point so do not hesitate to inquire with any of our Energy offices for propane contract pricing quotes. At the moment propane prices are well below last year’s values so again if our retail prices are appealing limit your risk and lock in your usage!
Thank you,
Bill Pelzel
Energy Manager
Filed Under: ArabiaBarrelCrudeFuelsGlobalOilPropaneRefinedSaudi