Consumer confidence took an unexpected hit for September, dropping the most it has in three years. The index fell by 6.9 points to 98.7, which is the biggest drop since August 2021. Expectations for the next six months sunk to 81.7, and the view of current conditions fell to 124.3. The drops are mainly due to slow down in the labor market, overall economy, and high living costs. These issues are keeping the gauge of the consumer confidence well below pre-pandemic levels.
Libya’s oil exports for September have seen a significant decline. Exports have dropped to 400,000 bpd this month. This is down from 590,000 bpd last month and 1.02 million bpd in early August. Production has fallen by more than half from typical levels per National Oil Corporation. This is largely due to the ongoing political instability and disruption at key oil fields and has broader implications for global oil markets.
Potential Hurricane Helene. National Hurricane Center reported that the latest tropical disturbance, which could become hurricane Helene, is expected to intensify, and potentially make landfall along the eastern U.S. Gulf Coast sometime Thursday. Historically, storms moving northward from the Caribbean this time of year have often rapidly strengthened into a hurricane. AccuWeather stated this system has the potential to become the “strongest hurricane to make landfall so far this season.” Chevron, BP and Equinor have joined Shell, starting evacuations of non-essential staff from certain Gulf of Mexico oil and gas rigs and production facilities.
The market is flat at the time of this writing and will now start to digest the DOE report that is listed below.
Please call your Energy Account Manager if you need to place an order to top off your barrels or lock in a contract for this harvest season.
PROPANE
Propane markets continue to trade in a tight range. The market seems to continue to follow the crude market. Trading at roughly 40% of crude, which is in a typical range.
Propane is sitting at a very high level of inventory in the U.S. (see the DOE report below). Exports continue to flow at a high volume, which are keeping the prices locked in a narrow range. We will have to see where this goes as we start to hit the demand season for propane.
Please call your Energy Account Manager with any propane needs you may have.
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