We have seen the price of Crude Oil retreat throughout July and into early August. It seems that North America is well supplied, but the uncertainty in Europe is keeping pressure on the price. OPEC+ is meeting in early August. The expectation is that they continue to pump oil at present levels or increase production slightly. Diesel prices have continued to fall from highs earlier this year. Refiners have increased production to respond to shortages. However, this came at the expense of gasoline production which has resulted in an increase to gas prices. Ongoing volatility is expected into the fall.
Propane inventories have been building throughout the summer but still remain below the 5 year average for this time of year. Expanded export options continue to impact the inventory levels and prices, in turn. However, somewhat surprisingly, prices have gradually dropped recently. It’s tough to determine if this will continue or not.