Energy Communications

Insights and Commentary

Key points on the energy market this week: 6/7/2021

Energy Comments:
  • OPEC + decided last week to continue the gradual easing of restrictions as planned back in March.  They appear to be in control of crude pricing as the U.S. supply lags pre-pandemic levels.  U.S. oil and gas rig count remained flat at 359 last week; in comparison pre-pandemic rig count was 670.   U.S. firms continue the focus on cash flow versus spending.
  • China had its lowest levels of consumption in 2021, last month as imports  were down to 9.65M bpd compared to 11.3M bpd in May 2020.  China’s refining capacity was offline much of May but is expected to be coming back online soon.
  • The crude market is down slightly to start the day however, it did top $70 in overnight trading.  The U.S., China, and Europe robust rebound has driven prices more than 40% higher this year.  Demand recovery has been patchy still in parts of Asia as the pandemic continues its surge.
  • The largest weekly propane build in three years of 4.1M bls only increased the four week average 0.3M.  Inventory positions remain very low in comparison to five year averages.  The DOE reports will be watched closely the next few weeks to gauge capability of supply for the upcoming peak seasons.  
  •  Propane contracting has begun for the 2021-22 season.  We will be contacting customers with contract pricing for the upcoming dryer and heating seasons.  Please work with your energy account manager to secure propane needs.


Propane Pricing Coming Soon

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

For more information about any of our energy solutions or to speak to our energy department call: 800-730-2838.