In spite of an assortment of political pressures throughout Europe and the Middle East, energy markets continue to trade lower. West Texas Intermediate crude oil has been trading around $70.00 USD for several weeks now. The impacts of the wars in Ukraine and the Middle East are being offset by reduced demand and increased supply from several OPEC members. The Canadian Trans Mountain pipeline has also introduced more oil to the markets, which has cut into the discount that Canadian crude has suffered from for many years. Gasoline inventories are consistently operating at the higher end of the 5-year averages. We are experiencing much more competitive pricing and this will likely continue into the winter, by all indications.
Distillate markets are following similar market trends to gasoline. Fall and winter demand will put pressure on the price but solid inventories should help mitigate the impact.
Propane inventory is in very good shape throughout North America. Consequently, the price has rolled back. Warm, dry weather, of late, has helped dry crops. Lower demand for the crop drying season should hold down prices into the fall. We expect winter prices to rise, but that will depend on the severity of our winter weather. Overall, energy products are well-supplied, at this point. We should enjoy some affordable pricing heading into the heating season.