Markets are starting to find some direction since the release of the DOE (Department Of Energy Report) came out this morning (see chart below). With a more than expected build on crude, diesel and gas markets have started to soften. The last two days we have seen a little bit of a downward trend so we will see it that continues through the day today.

The Israel-Hamas conflict continues to be at the center of market direction. The talks of a cease fire entered day three today and so far, have failed to reach an agreement. Latest reports are saying that Hamas wants any agreement that ends the Israeli military offensive. Along with a withdrawal of Israeli forces from Gaza, so displaced Palestinian’s can return to their homes. Israel continues to threaten an assault of the Rafah region, where more than half the Gaza residents are sheltering. This plan has drawn widespread condemnation and even the United States has warned that the country would face global isolation if they executed this plan.

United States consumer prices picked up again last month. That marked a 3.5% increase for the 12 months ending in March. That’s a jump from 3.2% in February. This marks the highest annual gain in the past 6 months. These numbers show us that the path to lower inflation remains very bumpy.

Now would be a great time to fill your tanks before the spring push kicks into gear, also a great time to make sure you have enough oil, hydraulic fluid, and grease on hand for spring. If you notice that you need a fill of diesel or need to stock up on lubricants, please contact your Energy Account Manager and they can get an order placed for you.

Propane

The DOE showed a very small 100,000-barrel draw today (see chart above). This was under the expected 780,000-barrel increase. Exports remain strong at 55.7% of production this week. We will have to wait and see if the warmer weather coming (see chart below) and the build season can pull down propane pricing that remains tied to crude oil’s hip.

We currently are offering contracts for this upcoming heating and corn drying season. Please contact your Energy Account Manager with any question or needs that you may have.

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