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.

4/28/22: Crude oil and distillate inventories are lagging well behind historical averages, which can impact propane values.