Oil and products are lower today as the market looks to continue this week’s slide. Worries surrounding economic conditions and fuel demand due to higher interest rates along with expectations that the FED will not cut rates until fall at the earliest is weighing on prices. Further insights into the FED’s policy could be seen in this afternoon’s release of the FOMC (Federal Open Market Committee) meeting minutes. This week’s DOE report is below.
Items that are supporting the market to keep an eye on. Ongoing geopolitical risks and supply disruption fears. We all are aware of what has been going on between Ukraine and Russia, and Israel and Hamas. Any further tensions beyond what has already happened could push markets higher. We also have OPEC+ that could possibly extend production cuts through the end of the year. This too would add upside pressure on the markets.
Please contact your Energy Account Manager with any questions or needs that you may have.
PROPANE
Propane inventory will be the name of the game going forward as we start to enter the build time of the year. This week’s DOE report is above so you can see this week’s gain in inventory!
PADD 2, or the Midwest have now built 28% or nearly 3.5 million barrels from the 2024 winter low. That is just above 12 million barrels as the combination of mild winter weather and record propane production levels has boosted inventories. If Midwest inventories equal their builds of last year for the remainder of the year, storage levels will increase by 14 million barrels putting us at a new record level of 29.7 million barrels. The chart below is for PADD 2 inventories from 2018 to present. You can see we have a very good starting spot for the propane build season.
We are currently offering contracting for the upcoming corn drying, and heating season. Please call your Energy Account Manager with any needs or questions that you may have.
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!
