Energy Communications

 

Energy Update for the week of July 19, 2021:

  • The big news over the weekend is the deal struck by OPEC + members on a production increase of 400,000 bpd starting in August with a goal of reducing the production cuts by 5.8M bbls by September 2022.  This has crude retreating to start the week and is currently down over $4 bbl now.
  • COVID case surge is also impacting crude pricing as demand is declining and inventory is rising.  The U.S. CDC reported the seven-day average of cases increased 70% in one week.
  • Propane is lower to start the week in response to the crude decline.  Last week propane increased at the close of the week based on a dismal inventory report.  The average four-week build is only 1.1M bbls versus last year's 2.8M bbls.  See the below picture for actual U.S. propane inventory which is below the five-year average.
  • Baker Hughes release the oil rig report and indicated an increase this week of 2 rigs taking the count of active rigs to 380.

Now Contracting Propane

Contract propne today for home heating and ag drying needs.
For more information about any of our energy solutions or to speak to our energy department call: 800-730-2838.