09.28.2022 Energy

Sep 28, 2022
Today’s weekly inventory report showed a somewhat surprising draw on gas, diesel, and crude oil inventories. This currently has crude oil climbing to the tune of almost $4.00 to nearly $82. Spot diesel is up just shy of .18 cpg with gas climbing nearly 3 cents per gallon. As demand is certainly expected to increase in the coming weeks and prices lower the previous few weeks it seems logical we will see Energy costs rise sooner than later. Although hurricane Ian appears to be a nasty one keep in mind off shore drilling in the Gulf is only responsible for 15% of U.S. oil production so a major price disruption and supply issues are not anticipated due to Ian. I am not seeing any major supply issues as we start harvest season but please help us help the Energy Industry and keep your tanks full as you proceed with fall work!
In the last two weeks propane has made decent strides in production while exports have been lower than predicted naturally raising U.S. inventories to just short of the 5 year average albeit Midwest Inventories are at a 10 year low. Unfortunately these two factors seem to have offset any major consumer price decline. As with diesel & gas please also stay on top of your propane supply, get on the delivery list as soon as you know your needs!

Bill Pelzel