05.12.2022 Energy

May 12, 2022
May 12, 2022
Currently crude oil sits at approximately $110 per barrel, crude has been flirting with the $100 marker quite frequently over the past couple months. Only 9 times since March 1st has the crude value settled below $100. Immense volatility is the best way to explain the Energy sector over the past few weeks. The Russia/Ukraine situation along with demand outpacing supply are the driving forces of increased pricing. Crude oil stocks, diesel stocks, and gasoline stocks are all below the 5 year seasonal average also assisting the price run up. Having said this the crude market has actually seen a little downside lately due primarily to a lack of Chinese demand caused by covid lockdowns, as of today the covid fears are weakening in Shanghai which will most likely cause a spike in product demand which makes it a good time to lock in Fall of 2022 diesel and consider locking in 2023 needs as well.
With recent propane product builds per the EIA’s (Energy Information Agency) weekly reporting we have seen a little softening of propane prices. The propane market is driven primarily by international exporting which lately has not been very active. I recommend strong consideration given to locking in 2022 as well as 2023 propane needs. As always please reach out to either CRC Energy office with questions and or to contract.
Thank you,
Bill Pelzel CRC Energy Manager
Posted: May 12, 2022