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 September, 2022

Fall has arrived! Turbulent weather down south has brought some cool weather to southern Ontario. Frost is expected throughout the first weekend in October. The Farmers’ Almanac projects a slightly colder winter than normal.

Our bulk propane plant in Stratford is close to fully operational. This will ensure we’re well supplied during the heating season. The market inventories continue to grow; exceeding last year’s pace for late September, but remaining below the five-year average for the time of year. Despite increasing inventories, prices remain heightened. We hope to see the prices fall if inventories continue to build into autumn. Of course, global events may continue to contribute to market volatility.

Crude oil prices retreated earlier in the month but rebounded over speculation that OPEC+ will reduce production in October. Fears of global recession, inflation and high interest rates may decrease demand. Somewhat surprisingly, inventories have been building of late, leading to a slight drop in price.

Gasoline inventories have fallen, which is to be expected for the time of year. We hope to see prices stabilize and retreat marginally in the coming weeks.

Distillate inventories are closing in on the 5 year average. Barring any extreme externalities, prices should stabilize headed into the fall.

Hurricane Ian and the Nord Stream 2 leaks will certainly impact market speculation. Other geopolitical events may even further exacerbate volatility. Consequently, it’s tough to predict the market heading into the end of the year.

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