Fuel markets remain volatile. Geopolitical risks and tighter inventories are supporting prices, while additional supply could provide limited relief.
Key Market Drivers
Middle East: Supply and shipping risks remain elevated around Saudi Arabia and the Strait of Hormuz.
Russian diesel: Additional exports may help, but expected volumes are not yet large enough to resolve tight diesel supplies.
U.S. inventories: Preliminary data showed larger-than-expected declines in crude oil, gasoline, and distillate stocks.
U.S. production: Domestic crude production remains strong and may help offset some global supply pressure.
China: Better-than-expected economic growth provides modest support for oil demand.
Gasoline
Gasoline prices may remain choppy but supported by tighter inventories and higher crude costs.
Diesel
Diesel faces greater upward price risk because of refinery outages, lower inventories, expensive freight, and geopolitical disruptions. Additional Russian supply may provide temporary relief.
Market Outlook
Near-term price risk remains tilted higher, especially for diesel. Customers with known fuel needs may want to cover a portion of expected gallons while keeping some flexibility for temporary price declines.
If you have any questions or would like current pricing, please contact your Energy Account Manager.
Propane markets remain firm as inventories continue to decline and exports remain strong. These conditions may continue to support prices in the near term.
What Is Driving the Market?
Inventories
Propane and propylene inventories declined by 0.5 million barrels in the latest report. Continued weekly draws would keep supplies moving lower.
Exports
Export demand remains an important source of market support. Prices could stay firm while cargo demand and loading capacity remain strong.
Winter Weather
The latest outlook calls for above-average temperatures in the Upper Midwest due to El Niño. Warmer weather may reduce heating demand, but strong exports could still draw down inventories and limit downward pressure on hub prices.
Market Outlook
Near-term propane prices may remain supported even if the winter is warmer than normal. Customers should review upcoming needs and consider securing a portion of expected gallons rather than relying entirely on lower spot prices later in the season.
If you have any questions or would like current pricing, please contact your Energy Account Manager.
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