Energy Communications

Energy Update | Week of December 7

  • This week’s update:
  • The energy market started the day much higher but retreated as the morning progressed.  WTI is now down slightly; however, started out over $2 higher.  ULSD is now trading down 5 cents.  Propane is flat from Friday’s close.  Below is the Heating Oil daily chart where you can see pricing is at levels seen in September, August, and April.
  • Today is the first day of the EU price cap on Russian crude.  Russia has said it will not sell to EU for the $60 bbl price cap and will divert its oil to Pakistan, China, and India.
  • OPEC + met over the weekend and decided to continue at the current production rates.  The October plan cut output by 2 M bbls starting in November.
  • China COVID restrictions are starting to ease in some cities over the weekend.  China is the world’s largest importer and has weighed on crude pricing due to concern about demand due to lockdown measures.
  • Propane saw a surprise build last week as the EIA shared a build of 1.6M bbl versus an expected .2Mbbl draw.  Propane inventory is up 23.1% YOY and is 12.7% above the five-year average.  Midwest inventories are at 26.4M bbls which is a five-year high after being at a five-year low 3 weeks ago.

Contact Your Account Manager

As a reminder, we have contracting options available for your fuel needs. Please reach out to your account manager to discuss ways to limit your risk. Sean Isaacson – Phone: (563) 221-3308  | Iowa N of Highway 30 & Illinois N of 88 Gary Carpenter – Phone: (563) 299-0466 | Iowa S of Hwy 30 Dan Woolsey – Phone: (309) 714-2596 | Illinois S of 88 We appreciate your business and look forward to serving your energy needs.   Your River Valley Cooperative Energy Team