Worldwide oil and gas fluctuations in production, refineries, and shipment are resulting in the continued uptrend in prices. The energy crisis in China is reducing—or shutting down—oil and gas refineries in Asia, and Russia continues to control the flow of oil and gas to Europe. We are seeing multi-year highs in crude oil prices, which are reflected in the increased price at the pumps.
At a local level, Eastern Canadian propane stores continues to grow and are slightly higher than the previous year. Western Canada’s inventory is continuing to grow as well, preparing for the winter heating season, though inventory is not quite at the same level as last year. Propane normally flows from the west, so the higher inventory in the east is only logical. These global factors have caused the prices of propane to rise over the summer months, ultimately leveling off in October.
Regarding winter fuels, we recommend that you top up bulk storage tanks due to the seasonal change of fuel. Gas and diesel change seasonally to optimize the effectiveness of the fuel in different temperatures. The refineries do this gradually, and by the first week of December fuel is fully changed to winter fuel—making this the optimal time to fill your tanks.
Customers with added concerns regarding the market outlook for oil and gas are encouraged to contact the local experts at Core Fuels, Red Cap, and Waterloo County Propane.