10.27.2022 Energy

Oct 28, 2022
In yesterday’s EIA (Energy Information Administration) report we learned that U.S. crude oil exports hit an all-time high for a week at 11.4M bbls. The assumed reason for this is to bridge gaps that exist in our current world market due to Russian energy products being removed from the market because of the war in Ukraine. This is happening while U.S. inventories are below normal naturally causing a recent spike in prices. As I write this crude oil currently sits at approximately $89.00 per barrel, about a month ago it was $82.00. This news would certainly seem to recommend we look strongly at 2023 fuel pricing and consider locking in those needs. Please also keep in mind domestic demand is typically pretty high this time of year as harvest operations continue, it will be interesting to see if we have our typical seasonal price drop once harvest comes to a close and demand drops off. In any event the price of diesel fuel is still inverted and although the current price is not super attractive in may be right in the range of what we need to get used to as the world energy situation continues to be a volatile somewhat confusing  commodity.
As for propane the lack of a significant corn dryer season has enabled propane to bounce around without any significant up or down price action. Supplies of propane are also in a decent place at the moment even though international exports have been large as of late. For customers wanting to use up unused corn dryer gallons/dollars please consider locking in 2023 propane needs as those prices are running 20-30 cents below our current price.
As always please call either Energy office for contracting info.
Thank you,
Bill Pelzel