Open for Business!
At last, states are fully open again.
The Corner Tavern
We can all use some humor after the stress of it all, so here’s a short video of what happens when your local tavern fully opens back up and cooks with your propane from Ray Energy:
Many things may never be the same, but the human need to interact with other humans is irrepressible. It’s truly heartening to know that we can all start to meet in person again!
What’s Driving Prices Higher?
If you didn’t know better you might think that the U.S. oil industry has become a new member of OPEC Plus. After all, oil production discipline is a primary tenet of OPEC Plus.
And U.S. oil production restraint, as reflected by the anemic weekly rig count gains and losses recently, has been remarkably consistent even as global demand growth has been exceeding production increases.
The result is that oil prices have reached their highest level in 32 months.
Maybe it’s a case of inflationary pressures and higher production costs. Or maybe it’s just as simple as this: the domestic oil industry has its collective mind set on higher margins versus higher market share to make up for last year’s dismal earnings.
What’s Happening With Propane Prices?
The $35.00/bbl. WTI crude oil price increase since last June at this time is the propane equivalent increase of about $.46 per gallon.
Propane Price Chart
Weekly Inventory Numbers
U.S. propane inventories continue to wobble with a lower than expected build of only 1.54 mmbbls. for the week ending June 11, 2021. That brings national inventory levels to 55.19 mmbbls., about 20 percent behind last year and 13 percent behind the 5-year average.
PADD 2 (Midwest/Conway) inventories had a build of 1.12 mmbbls. They currently stand at 14.65 mmbbls., roughly 11 percent behind last year.
PADD 3 (Gulf Coast/Belvieu) inventories showed a surprising draw of .21 mmbbls. They now stand at 31.44 mmbbls., nearly 25 percent behind last year.
The Skinny
It’s truly heartening to know that we can all start to meet in person again! It’s been too long …
And, Happy Father's Day to all of the propane Dad's out there!
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