05.17.2024 Energy

May 17, 2024
On Wednesday May 15th the Energy Information Agency (EIA) announced in their weekly inventory report that crude oil, diesel, and gasoline stockpiles unexpectedly declined. Naturally we have witnessed small price increases on these products since this report came out. Massive rains in Houston have caused flooding which could impact oil production and refining operations also giving a touch of upward momentum to prices. Pushing back against any significant upward price movement is decent domestic production and low demand for energy products. All in all, it appears as though we are exiting an investors “oversold” position which can trigger Wall Street crude oil purchasing giving strength to crude oil pricing. Stay tuned to the constant volatility and be prepared to grab some diesel for this coming fall in you haven’t already!

Propane was reported to have an inventory build as expected this time of year. Propane production is up year over year but so is demand, exports of propane which is the price driving force are also strong now. Combining these details currently gives us a sideways to lower propane market price. I feel consumers can afford to be a little patient before we lock in propane for fall/winter 2024-2025.

Thank you for reading, I hope the planting season is going well for all.
Bill Pelzel
CRC Energy Manager