Let’s lead things off this morning with a note from Flashpoint’s Darius Lechtenberger:
“The Commerce Department reported weaker-than-expected U.S. economic growth for the first quarter. GDP grew at a 1.6% annualized rate, below the forecasted 2.4%. Inflation also accelerated, with the Personal Consumption Expenditures price index rising 3.4%, its largest increase in a year, while consumer spending growth slowed to 2.5% from 3.3% in the previous quarter. Despite previous expectations for interest rate cuts starting in June, recent Fed signals suggest a delay until at least September due to persistent inflation. Additionally, tensions continue to simmer as reports from Rigzone indicate potential disruptions by Iran in the Strait of Hormuz. Meanwhile, propane prices saw increases of over a penny yesterday in both Conway and Belvieu.”
I get the feeling that were it not for considerable geopolitical unrest, energy prices might be much softer than their current levels. However, with wars in Ukraine, Palestine and other offshoot military activities, there has to be a bit of a volatility premium still priced into energies. The Japanese Yen is taking a bath this morning, too. The financial health of most of the largest economies in the world are seemingly in far greater trouble than what we are experiencing in the United States, but as connected as global economies are in 2024, what happens on the other side of the planet can come home to roost in America.
As Darius mentioned, propane values saw a bit of an uptick yesterday and pricing is firm this morning.