Distillate and gasoline prices have been on the rise over the summer. Several factors have taken their toll. Geopolitical influences and cutbacks from OPEC have persistently weighed on the markets. With that being said, WTI crude oil has stabilized at about $80 per barrel for months now. Finished petroleum products have resisted this trend and have been more volatile of late. We can reasonably expect sustained volatility through the end of hurricane season. North American crude inventories are, currently, 11% lower than last year. Despite gasoline inventories being marginally lower than 2022, distillate stocks are slightly higher. Ongoing unrest in Eastern Europe will continue to put pressure on these products as winter approaches. Revitalized air travel will also influence distillate supply moving forward.
Propane inventories remain well above the five-year average. Assuming we avoid any unforeseen disruptions, we should be well supplied heading into winter. Commensurately, prices are still near the lower end of the five-year average.
Recent implementation of the Clean Fuels Standards has yet to impact fuel supply and cost but will become more of a factor going forward.