First up, a note from Flashpoint’s Trader and veteran propane market consultant Darius Lechtenberger:
“WTI crude oil and and refined product prices are slightly up this morning in early trade. Energy prices cooled off a bit yesterday, but it took a truckload of bearish headlines to make it happen. There were reports that the EU agreed to delay a ban on Russian coal imports until August, something the market thought would happen right away, after Germany pleaded for more time to look for alternatives. Also, the Fed signaled in the Fed Minutes the potential for a couple of 50 basis point interest rate increases. Lastly, the International Energy Agency (IEA) confirmed that they would coordinate with the U.S. to add 60 million barrels of their strategic oil supply to the global oil market. The coordinated strategic reserve releases will buy some time and cool prices for a short period, but unless something is done to stimulate supply and/or dampen demand, prices will skyrocket once the SPR release has ran its course. Europe’s inaction and their inability to ban Russian coal, oil and gas is just another indictment of the blunders of their energy policy failures. Now they are giving into the Biden administration’s pleas to release more oil even though most understand that this strategy will only have a short-term impact and will make supplies tighter in the future.”
On the propane front, prices saw a pullback yesterday and we saw a significant level of retail buying for winter of 2022-2023 as well as for 2023-2024. As always, reach out to us if you have any supply, pricing or any concerns related to your business, at jon@flashpointep.com and I can either help you find what you are looking for or put you in touch with one of our team members who can best serve you.
