Energy Market Update

Refined

Crude oil prices fell some yesterday due to concerns over high fuel prices hurting economic growth. Planned Covid restriction easing in Shanghai coupled with tight supply outlook capped those losses. Once China starts to lift restrictions it could lead to oil demand rebounding.
 
The European Union is also trying to get a package passed that would include a total ban on oil imports from Russia in the next six months. However, Hungary has vetoed this proposal. They will now look to a summit coming up on May 30-31 for a chance to come to an agreement.
 
U.S. crude stocks declined last week. Refining activity also picked up as we are coming into the busy summer driving season. We still saw crude decline even though we released 5 million barrels out of the U.S. SPR (strategic petroleum reserve). This release brings the SPR down to 538 million barrels. This is the lowest the SPR has been since 1987. The graph below shows the current U.S. crude stocks. This graph is courtesy of the EIA.



Propane
Propane is currently trading at 46% the value of crude. Propane was expecting to see a build of 2.3 million barrels in the DOE report yesterday. Instead the report was well below expectations. Some keys contributing to this is exports were higher than a week ago along with domestic demand being up, and production was down. Hopefully we can get some good builds on product in the coming weeks. The graph below shows the current U.S. propane stocks. You can see that we are still far below the 5 year average on product. For any questions on contracting products or current pricing please contact your Energy Account Manager.



NuWay-K&H Cooperative Customer Portal
Have you received an invite to our NuWay-K&H Cooperative Customer Portal? Accepting your invite to the Portal offers many advantages, you can check billing, make payments, request a quote, check previous years product usage, see invoices and statements, and much more. We also offer digital contracting through the portal where you can sign and pay your energy contracts through our mobile app or desktop site. Your Energy Account Manager can help you with getting an invitation to the portal if you have not already received one.


Energy Futures Details

DISCLAIMER: The information contained herein has been obtained from sources which NuWay-K&H Cooperative believes to be reliable. NuWay-K&H Cooperative does not represent or warrant as to its accuracy or completeness.  All representations and estimates included herein constitute NuWay-K&H Cooperative’s judgment as of the date of the presentation and may be subject to change without notice. This material has been prepared solely for informational purposes relating to our business as a physical energy provider. NuWay-K&H Cooperative shall not be responsible for any reliance upon any information, opinions, or statements contained herein or for any omission or error of fact.