CORE FUELS

Blog

The fuel industry is in constant flux, and we always keep an eye on any developments that can benefit our clients. Here, we’ll share findings, some research, and our opinions on a wide range of topics related to our industry.

The Core Fuels Market Outlook For January, 2022

Overall, the price of propane has risen another couple of cents. At this time, North American supply is considerably lower than the five-year average. However, the shortages are predominantly in the Gulf Coast, so we are well-supplied regionally. The omicron variant appears to be shifting towards an endemic stage, hopefully alleviating some burdensome restrictions on the economy. This will continue to fuel an increasing product demand as industries, such as travel, prepare to resume business. Colder temperatures, of late, also contribute to high demand. Degree day totals are still below average, but will likely catch-up; as we expect cold weather to extend through the end of the month.

In related news, the State of Michigan has withdrawn one of its Line 5 lawsuits. This may be a bellwether for the ongoing legal disputes.

Regarding fuels, crude oil prices continue to rise and now sit about even with the pricing prior to omicron and the BC floods. Like propane, demand will continue to climb as the economy opens up.

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