Weekly Farm Fuels Bulletin | Diesel Drips Lower Amid Production Hike

Posted on 08/14/2018 12:06 PM

 

Farm Diesel

  • Farm diesel fell a penny per gallon on the week.diesel price chart
  • Most states were unchanged with Michigan falling a nickel as Nebraska dropped 4 cents per gallon.
  • Front-month WTI crude oil futures are stepping down gingerly and have, for the time being, rejected moves above key $70.
  • According to EIA, national distillate stocks are firming as refiners increase production runs. Stocks are, however, still at the very bottom end of the five-year average range.
  • Our farm diesel/heating oil futures spread indicates mild near-term upside risk (see chart at bottom). But if refiners continue to produce fuels at their current pace, the upside will be limited, especially in light of softening WTI futures.

Propane

  • Our regional average propane price is unchanged on the week with all states except Nebraska posting no change.
  • Nebraska propane added 2 cents per gallon to a statewide average of $1.14.
  • According to EIA, U.S. propane stocks are on the rise and are making progress into the 5-year average supply range.

Fuel
7/30/18
8/6/18
Week-over Change
Current Week
Fuel
Farm Diesel
$2.56
$2.52
-1 cent
$2.51
Farm Diesel
LP
$1.27
$1.34
Unchanged
$1.34
LP

Our farm diesel/heating oil futures spread compares the weekly average retail farm diesel price with front-month heating oil futures as of the close on the previous Friday. A move below the "line in the sand" indicates pending upside risk. A move above our "line in the sand" indicates downside potential.


heating oil futures spread chart

 

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