This week there has been many headlines affecting our current and future pricing of diesel and gas products. The majority of the days this week the market was down on all products. Today started out higher but is trending close to flat at the time of this writing.
OPEC+ held a meeting yesterday to discuss market stability. They affirmed their commitment to cutting 2 million barrels per day through the end of 2023. A few of their delegates also told Reuters they consider the slide in oil this week is driven by the financial fear instead of supply and demand. Their next meeting is scheduled for June 2023.
Several banks provided assistance yesterday by injecting $30 billion into the First Republic Bank to tame fears of a liquidity crisis. This may not have the industry out of the woods yet. The Federal Reserve will meet next Tuesday and Wednesday to announce its next interest rate decision.
As always going into spring we recommend having full fuel barrels. If you have will call barrels that need topped off, or monitored barrels that need the hold removed, please contact your Energy Account Manager or the office for any need you may have.
Propane
There is some good news on the horizon for propane. They are expecting to come out of the heating season with good inventory on hand in the Midwest. That could be good news for future pricing as we get through this heating season. We will have to keep an eye on exports, if they start to pick up it could make it advantages for the Midwest to ship product to the gulf coast. That could in turn drive prices up.
Conway is currently trading at 45% of the value of crude oil. It has been in the 43% to 48% range for a while now. Below is the DOE report that came out on Wednesday this week. You can see that there was a little draw in the Midwest, but for the entire country it was a build of just under 1 million barrels. Normally this time of year we see a draw.
We are currently offering contracts for the next heating and drying season. Please contact you Energy account Manager or the office to lock in any needs you may have.
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.
