Energy Market update: April 21, 2023
Crude and products are edging higher in Friday morning trade, but all three segments are still on pace for a weekly decline. A combination of slowing economic data and mid-week rising gasoline inventory numbers rekindled recessionary fears in the market.
Last week the weekly jobless claims report showed an increase. This put the total up to 245,000. This along with the reports of decline in both U.S sales and manufacturing output coupled with high inflation numbers have kept recession fears in the foreground for traders. Many analysts believe this is a sign the Federal Reserve is expected to raise interest rates in May.
Data was just released from the Eurozone (member countries who have adopted the euro) showed a surprise strong PMI (Purchasing Managers Index). The numbers show an 11 month high on PMI data. This points to economic recovery and is a bullish indicator for traders. The biggest increase was in the service industry showing consumers continue to spend money.
The U.S. could start refilling the SPR (Strategic Petroleum Reserve) by this fall according to Amos Hochstein, the special presidential coordinator for global infrastructure and energy security. He said that “if the price is right” the U.S. is “100% committed to replenishing the SPR over a period of time”.
We are entering dirt work and spring planting will be going strong, once things start to dry out. Now is a good time to check your fuel tanks and make sure they are full. It is always a good idea to have full fuel tanks to start. This would also be a good time to check out your stock on lubrication items. Please call your Energy Account Manager or the office for any of your current needs.
Please see this week’s DOE (Department Of Energy) report below.
U.S. propane exports last week crossed the 1.8 million b/d mark for the fifth time since October 2022 and registered a new all-time high of 1.851 million b/d for the week. It is estimated that max weekly export capacity for propane is approximately at the 1.85 million b/d mark. It appears more certain that market volatility will continue to be the norm. Weekly propane DOE report is above.
Besides just discussing market conditions, let’s take a moment to talk about other products we offer. Today the topic is grease. We currently have a fairly decent supply of standard grease products. An example would be Blue Gard 500/10-pack tubes. We offer other less standard products, but due to an industry-wide issue, we may be low or have those items on backorder. Our Energy Team will be meeting with our supply representative on Monday, April 10th, to discuss availability, timeframes for receiving products, and possible equal substitutes.
If you are in need of grease please contact your Energy Account Manager. They will work towards getting what you might need currently, and then get more information to you on your needs when a better supply is provided to us.
NuWay-K&H Cooperative Customer Portal
Have you received an invite to our NuWay-K&H Cooperative Customer Portal? Accepting your invite to the Portal offers many advantages, 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. Your Energy Account Manager can help you with getting an invitation to the portal if you have not already received one.