News > Energy News > Energy Market Update - February 3, 2023

Energy Market Update - February 3, 2023

Feb 03, 2023

Refined Fuels

This week markets have been on the softer side with only one up day so far. Monday, Wednesday, and Thursday all produced softer markets. Tuesday and today so far look to be the only two up days of the week.

This week we saw the bears take over after a very nice DOE (Department Of Energy Report) that was released on Wednesday. Please see the chart below. Tuesday there was some steam in the market along with today so far. Crude is up slightly and the products are still searching for direction at the time of this writing.

So far this week there has not been a whole lot of economic headlines to give the market direction, except for the DOE. There are however some key headlines to keep an eye on as we move forward. There is an OPEC+ meeting on Sunday. We all know that any news dropped out of these meetings seem to push the market place. We are also keeping an eye on February 5th. The EU will be meeting today to seek a deal to set price caps on all Russian oil products. It will be interesting to see if this is already been built into the market or if it will provide upward momentum.



Propane has continued to have its ups and downs as well. We have seen a cold streak that has pushed it higher. Then we also have the influence of crude that has pushed it lower at times. Another market that seems to be very volatile given the day and news.

Propane is currently trading at 46% of the value of crude, and has been in this range for some time now. During heavier usage we have seen this number get up to 55% to 58%. We will continue to monitor this as we push past this cold snap that we have found ourselves in.

On Wednesday the EIA (Energy Information Administration) report came out showing a 2.4 mil bbls draw (see the chart below). The expectations before the report was for a draw of 1.5 mil bbls draw. The current draw for the week was still however lower than the 5 year average draw of 3.03 mil bbls. Propane exports were down which countered the demand being up in the United States. This helped keep a cap on upside momentum.


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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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