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Energy Market Update
Energy Market Update
Sep 01, 2022
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Energy markets are in a down trend for the past two days. Today is following in those same footsteps. All energy products are finding downward momentum today. This is due to some of the same reasons that we have been talking about for what seems forever. Supply and demand continues to drive the market.
Demand is leading the way the past few days. Covid 19 lockdowns have resurfaced in the major city of Chengdu China. Chengdu has 21 million citizens and accounts for almost 2% of China's GDP. This is the largest city lockdown since Shanghai. This is putting limits on China's demand outlook and could drop their estimated demand by 1-2 million bpd. There are still concerns over a recession and that would also hinder demand.
All the demand news is weighing hard on the market place and is overshadowing supply issues. The EIA dropped their numbers out for the week on Wednesday which showed draws on crude oil and gasoline with a very small build on diesel. In the graph below you can see that distillate’s (diesel) is still well below the five year average as we head into harvest. A good way to combat some of this is to fill your tanks now and make sure to go into harvest full.
Propane
Propane continues to follow the crude market for now. Propane is currently trading at 51% of crude. When the EIA released their numbers Wednesday propane showed a nice build of 4.2 million barrels. However the bulk of that was in the Gulf where it seemed that exports were down this week. The Midwest build was very small at 500,000 barrels. This is concerning for the Midwest as we have not had very good builds all summer long. We will have to wait and see if this will affect pricing.
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.
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