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 May, 2023

Energy markets continued to be somewhat steady throughout May. Crude Oil is in the low to mid-seventies, staying at the low end of the twelve-month average. The Nymex futures are within this range as well. Demand is strong and it looks like the market is well supplied. Distillate markets have also been steady at the low end of the twelve-month average. Demand for distillates is increasing, but supply seems to be keeping pace. Gasoline has seen a recent increase in cost. This seems to be consistent with seasonal demand. All three products have seen inventories drop in recent weeks which is cause for concern. The Strategic Petroleum Reserve withdrawal continues to be used as a tool to bring down the price of energy products. At some point this strategy will be exhausted and it will have to be replenished. The draw on both the inventories and the reserve are troubling and may lead to future volatility. On July 1 2023, the new “Clean Fuels” Act will take effect and require fuel to have a smaller carbon footprint. This Act will be implemented over six years and will impact almost all products. Ethanol requirements, as well as carbon capture initiatives will be implemented. This may cause some uncertainty, cost, and added stress to the existing infrastructure.

North American Propane inventory levels remain above the five-year average, which has led the price downwards over the last two months. Export market opportunities are very strong at this point. This may slow the build of inventory toward the mean over the summer months and into the fall.

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