03.23.2023 Energy

Mar 23, 2023
Recently we have seen significant downside in the Energy sector as the Fed interest rate hikes and banking headlines cause lower pricing pressure. Fundamentally global crude oil and refined fuel products signal higher pricing as public and private fracking companies are likely to cut crews and rigs because of the dropping crude oil price. Moving forward we should expect prices to climb from this point, unless we were to experience a full blown recession! In any event prices of diesel and gasoline are as low as we’ve seen in months so for those who have not positioned 2023 needs I recommend taking a good look at current values and determine if it fits your 2023 budget. Also consider locking in a portion of 2024 needs.

Propane markets have been flat most of this year, recent cooler weather created a surprise weekly inventory draw in yesterday’s EIA report. Long term due to high propane stock levels, strong production rates, and exiting heating demand season we are set up for potentially lower propane prices as we transition into spring and early summer.

I’d like to remind patrons that our spring refined fuels contracts begin April 1st as well as the BIO transition from B5 to B20, please reach out to us to schedule a delivery as soon as road conditions are suitable! Obviously many of us are aware of the challenges facing all of us required to travel gravel township and county roads.

As always thank you for your patronage and please reach out to either CRC Energy office for market advice or any type of Energy need you may have.
Bill Pelzel
CRC Energy Manager
Filed Under: EIAinterestpricingweather