The price of crude oil continued its decline over the month of November. As of press time, West Texas crude is sitting around $80.00 per barrel. Inventory levels in North America are still above last year’s levels, so we appear to be in decent shape. However, Western Canadian crude is trading at a $30.00 deficit to the benchmark. This discount is frustrating, as it doesn’t seem to benefit anyone – especially the Canadian consumer.
Distillate pricing has retreated, in the last several days, from all-time highs earlier in the month. A build in inventory began mid-month but still sits 15% below last year’s numbers. Inventories remain well below the five-year average. The price decrease towards the end of November is due, in large part, to demand speculation as the world economy appears to be slowing down. Chinese demand, in particular, has been stymied from ‘zero-Covid’ restrictions of late; though restrictions are easing amid public backlash.
Gasoline pricing has also been trending downward lately. Inventories are down slightly, but we’re seemingly well-supplied at this point.
Propane pricing continues its marginal decline during the fourth quarter. Inventories are building throughout North America due to mild weather and a light crop drying season. Analysts predict that we should be well-supplied with propane barring any unforeseen circumstances or prolonged extreme weather.