Insights and Commentary

Key points on the energy market this week: 5/3/2021

• As April ended we saw upticks in energy pricing; WTI gained $4.42 on the month.  Positive signs coming out of Europe, China, and the U.S. regarding recovery from COVID are encouraging.  Causing concern is the continued  increases of cases in India; the third largest importer of crude.  
• OPEC is poised to begin the production increases that were announced in late March.  Additionally, Iran is increasing its supply and was reported at 2.5M bbls/day which is a significant jump compared to the 200,000 bbls/day in March.  The U.S. and Iranian officials began attempts to reinstate the previous nuclear deal.
• Baker Hughes reported a decline of one in the U.S. rig count.
• Propane finished a very volatile April with tight inventories and wet premiums.  The ability for U.S. production to outpace export demand is in the spotlight and will continue to press the typical seasonal pricing.  Many analysts are reviewing historical information to get a better understanding of what may happen in the propane markets.

Propane Pricing Coming Soon

As we approach our contracting season, check back for propane pricing updates. 

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