Energy Communications

 

Energy update for the week of November 22, 2021:

  • The crude market has picked up steam this morning after starting slow out of the gates; currently, WTI is up nearly $0.90/bbl. Last week saw crude tumble on news of Biden contacting China and Japan to have a coordinated release of oil reserves to cool the market. Additionally, COVID resurgence in Europe is impacting demand as lockdown measures are implemented.
  • Goldman Sachs is saying the recent declines have “overshot” the risk associated with the recent demand declines and restated that the crude market continues to be in a deficit. They are reiterating an $85 /bbl forecast for the fourth quarter. WTI has retreated over $10 from highs this month and is at levels not seen since September.
  • U.S. rig count increased by 7 bringing it to 461.  This is a 73% increase since the start of the year and more increases are anticipated as U.S. firms are spending more to bring rigs back online into 2022.
  • The U.S. dollar has traded close to a 16 month high against the Euro making dollar-priced energy more expensive for buyers with other currencies.
  • Propane hub trade has declined in 7 of the last 8 sessions and is now at levels not seen since August. Weaker export demand due to shipping delays and vessel costs appear to be the key reasons for the reductions. Additionally, the fourth warmest October and light drying season has likely left market participants with an unexpected length in inventory. Extended forecasts are now leaning towards a warmer December for all regions of the U.S.
  • Conway has started off the week down again as it has retreated another 2.5 cents on the day. Overseas propane is off 3 to 7 cents overnight.
  • Have a great Thanksgiving!

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.    

Cold Flow Improver (CFI) has been blended into the diesel fuel delivered to your fuel tank unless you opted out. CFI is formulated to extend the operability of the fuel by an average of 15° F. 
 
As always, we appreciate your business and look forward to serving your energy needs.