Aided by a drop in demand, propane inventories have recouped throughout the month of April. In turn, the price of propane has dropped marginally and, aside from the carbon tax increase, appears to be about even with the price immediately prior to the invasion of Ukraine. Though the end of the month was chilly, expect May to warm up quickly and further alleviate demand. We hope to see the downward price trend continue, but time will tell.
After receding towards $100/barrel at the beginning of April, crude prices rose precipitously mid-month amid mounting NATO sanctions against Russia. Recent Covid-19 lockdowns in Shanghai and Beijing, along with speculation of increases to U.S. interest rates, have offset the increase in European demand and restabilized the prices. However, in response to the sanctions, Russia cut off gas supply to Poland and Bulgaria earlier this week. Expect more volatility to come.