There have been several oilfields across Libya that have halted output. This is due to a dispute between rival government factions over control of the Central Bank and oil revenue. This has halted about 400,000 barrels per day of oil output. This would give a bullish tone to the market but, OPEC+ is scheduled to add 543,000 barrels per day of oil output in the fourth quarter this year. This has basically created a wash on what has happened in Libya.
Another Drone attack in Russia. The Kamensky district of Rostov has an oil depot that was attacked overnight by Ukrainian drones. Several of their tanks were set ablaze. No deaths were reported, and Russia’s air defense did indicate that they had destroyed four drones. This is the second attack of fuel tanks in the Kamensky district during August. Kyiv officials suggest the air attacks aim to destroy energy, transport and military infrastructure which are essential to Russia’s war efforts.
The DOE report was released this morning showing a draw in crude oil that was less than anticipated. Gasoline had a draw that was a little more than expected and diesel had a very small build which was also better than expected. Please see the report below.
Now would be a good time to check your tanks and make sure you are ready for harvest. If you need to place an order or contract some product, please reach out to your Energy Account Manager.
PROPANE
Propane continues to ride the coattails of crude. This is despite of the current inventory of propane in the U.S. As you can see in the DOE report below the U.S. is currently sitting around 93 million barrels of propane in inventory. Even with the inventory sitting where it is, propane continues to be trading at 41.9% of the value of crude.
It sounds like there will be a good demand for crop drying this year not only in our neck of the woods, but also in places like Indiana where they are expecting a record corn crop this year. We will be watching demand closely as we go forward. Obviously if there is strong demand it has the possibility to drive prices upward.
If you are needing filled before we get into harvest or need a contract for drying, home heating, or commercial use, please contact your Energy Account Manager.
NuWay-K&H Cooperative Customer Portal
Through our portal, you can check billing, make payments, request a quote, check previous years product usage, see invoices and statements, and much more. We also offer digital contracting through the portal where you can sign and pay your energy contracts through our mobile app or desktop site. Click here to log in!
