Fuel markets continue to be driven mainly by global supply concerns. Tensions involving Iran, Israel, and shipping through the Strait of Hormuz have kept pressure on crude oil prices, since that region is important for moving oil to the world market. At the same time, Russia is expected to reduce crude exports as it sends more supply to domestic refineries, which also adds to concerns about available global supply.
There are also some factors helping to limit further price spikes. OPEC+ continues to raise production targets, although actual increases may be limited while shipping disruptions continue. In addition, China’s oil demand has been weaker, with lower refinery activity and lower crude imports. That softer demand is helping offset part of the supply risk in the market.
For customers who buy gas and diesel, this means prices may remain sensitive to headlines and world events. Wholesale markets can move quickly when there are threats to production, refining, or major shipping routes. Even if local supply remains available, futures and rack prices may continue to show day-to-day volatility.
Market Outlook
The near-term outlook for gas and diesel remains firm to volatile. If tensions in the Middle East continue or worsen, crude and refined fuel prices could stay elevated or move higher, especially if shipping through the Strait of Hormuz remains disrupted. On the other hand, weaker demand from China and higher OPEC+ production targets could help slow or limit additional increases if supply conditions improve.
Overall, the market outlook suggests continued price volatility rather than a clear long-term direction at this point. Customers should be prepared for quick market moves in either direction, with global geopolitical developments likely to remain the main driver in the short term.
If you have any questions or would like current pricing, please contact your Energy Account Manager.
Propane
U.S. propane inventories remain well supplied. Market expectations pointed to another weekly inventory build, following last week’s increase that brought total propane stocks to 83.3 million barrels. Current inventory levels are running significantly above both last year and the seasonal average, which suggests supply conditions remain comfortable heading into the summer period.
Market outlook
Based on the inventory data, the propane market appears to have a bearish to steady tone in the near term. Inventories continue to build and remain well above normal levels, which should help support availability and may limit upward price pressure unless weather, exports, or production trends shift meaningfully. Customers should continue monitoring the market, but current fundamentals point to a well-supplied propane environment.
If you have any questions or would like current pricing, please contact your Energy Account Manager.
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