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Energy Market Update

Aug 05, 2022


Oil prices today are near their lowest level since February as concerns over a possible recession and a fall in fuel demand continues to shake up the market. The majority of this week has been a downward trend, if there were up days, they were minimal. We started the morning with a good down day, but it is turning a bit. At the time of this writing distillate is down $.06 cents and gas is up $.06 cents.
What still remains is tight supply and varying degrees of demand. The war in Ukraine continues and with that a real possibility of a gas shortage for Europe. To offset that is fears of a recession both domestically and abroad, which could keep a cap on demand and put the bears in the forefront of the market.
There have been reports of a lower supply of fuel (see chart below-courtesy of CHS), especially as we go into harvest. We currently are able to get supply, at times it may require going to a terminal farther out to get product. We ask that you don’t wait until the last minute to fill your tanks, but rather go into the season full. Please call your Energy Account Manager (EAM) if you would like a fill or if you would like information on current pricing or forward contracting.


Propane has been mostly steady. When there is movement, it is minimal, up a penny or two on the day and down a penny or two the next day. The hubs had opened today with a move to the downside, but like refined, LP is creeping back up this morning. Trade seems to be moving on news that overseas markets were slightly down in early reporting.
The charts below show the weekly outcomes from the EIA dated 8-3-22. It shows builds and draws. As you can see the U.S. had a build for the week of 1.8 million barrels, and a build is good right? However, as you look at each section of the country and their results, the majority of the build was in the Gulf Coast, which implies exports. And as we have mentioned before, the best way to keep supply in the Mid-West is to be higher priced. Therefore, not as attractive and less likely to move south.
For those that may not have taken the spring fill and would like to fill at this time, please reach out to your EAM. You can also inquire about forward contracting for the upcoming heating and drying season.

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.

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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. 

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