1-18-24: Propane Draws 2.8M/bbls

Propane inventories drew down 2.8M/bbls for the week ending January 12th, 2024, and for the first time in a long time, the year over year inventory comparison is now in deficit.

Uncertainty in Global Crude Markets

Global oil markets are facing a supply-driven shift as increased crude production from non-OPEC+ nations, notably the United States, threatens to outpace slower-paced global demand growth. Despite OPEC+’s pledge for deeper output cuts, traders remain skeptical about their effectiveness in eliminating the surplus fully. This has led to the first annual decline in crude oil prices since 2020, defying expectations of a post-pandemic recovery.

Polar Vortex to Start the New Year?

Hey, the Polar Vortex may be making a visit near you….soon! What’s going on with the January forecast? We talk about that in today’s Propane Buzz, along with a look at the ride we took with propane prices in December that saw Conway close the month higher than TET for one of the few times in 2023.