Energy Communications

 

Energy update for the week of October 12, 2021:

  • The bulls continue in the energy markets today.  Crude is starting off the week up nearly $1.75 bbl as November WTI is over $82.  As noted last week, OPEC continued the pressure on the global markets by not increasing production above the 400,000 increase.  Saudi Arabia did announce they would supply three Asian buyers additional crude in November as blackouts continue due to lack of energy supply. 
  • The US rig count increased last week by five to 433 as US crude futures have hit their highest since 2014.  This dramatic recovery is a 64% increase so far this year and finally has some energy firms planning on raising spending to bring production back online.
  • Conway propane is trading at 78% of crude this morning and continues its surge along with crude.  Propane markets continue to be challenged with inventory concerns, global energy demand, and record exports this year.

Winter Diesel Fuel Blending Notification

With cold weather fast approaching, it’s time to start thinking about your winter diesel fuel needs. At River Valley Cooperative, we believe incorporating cold flow improvers and #1 diesel into your fuel when ambient air temperatures approach 40° F is appropriate to ensure cold weather protection.    
Based on current weather projections, we will start Cold Flow Improver (CFI) blending into the diesel fuel delivered to your fuel tank on November 1, 2021. CFI is formulated to extend the operability of the fuel by an average of 15° F. 
 
If you plan on operating in temperatures below 15° F, #1 diesel should be blended into your tank. If your tank was blended with #1 last year, we will automatically blend down your tank to the same ratio as last year. If you are a new customer or would like to start having your tank blended, please call our Energy Office or your energy account manager. 
 
If you do not want CFI blended into your diesel fuel or if you need to request/change winter blending options, please contact the Energy Office or your River Valley energy account manager by October 22, 2021.
 
As always, we appreciate your business and look forward to serving your energy needs.