05.04.2023 Energy
May 04, 2023
5-4-23
Wednesday May 3rd the US Federal reserve raised interest rates another 1/4%, in anticipation of this we’ve seen Energy commodity prices tumble causing traders to “sell off” positions. Today the price of crude oil is just below $69, when the Fed’s raised interest rates there was some language indicating this may be the last rate hike on the horizon. Considering crude oil was predicted to remain near $90 per barrel earlier this year and the potential slowing of interest rates we need to strongly consider this as a buying opportunity for the remainder of 2023 Energy needs as well as layering in some of 2024. Following suit, propane has also shown significant price downside, this calls for attention as well. Please reach out to any one of our Energy offices in Hanska, Sleepy Eye, or Buffalo Lake for product pricing and market info.
Thank you,
Bill Pelzel
Energy Manager
Wednesday May 3rd the US Federal reserve raised interest rates another 1/4%, in anticipation of this we’ve seen Energy commodity prices tumble causing traders to “sell off” positions. Today the price of crude oil is just below $69, when the Fed’s raised interest rates there was some language indicating this may be the last rate hike on the horizon. Considering crude oil was predicted to remain near $90 per barrel earlier this year and the potential slowing of interest rates we need to strongly consider this as a buying opportunity for the remainder of 2023 Energy needs as well as layering in some of 2024. Following suit, propane has also shown significant price downside, this calls for attention as well. Please reach out to any one of our Energy offices in Hanska, Sleepy Eye, or Buffalo Lake for product pricing and market info.
Thank you,
Bill Pelzel
Energy Manager