Weekly Farm Fuels Bulletin | Farm Diesel Steady Amid Bullish Risk

Posted on 04/30/2018 4:31 PM

 

Farm Dieseldiesel chart

  • Farm diesel was unchanged this week.
  • WTI crude oil starts the week on edge over ideas the world surplus has been dealt with, and on growing tensions between Israel and Iran.
  • Front-month heating oil futures firmed a penny today to $2.16.
  • Our heating oil futures/farm diesel spread (see chart at bottom) continues to indicate building upside risk for retail diesel.
  • The outlook for crude oil, heating oil and fuels currently carries a sharp upside bias and industry watchers are predicting at least a 10% rise in summer fuels prices over last summer.

Propane

  • Propane prices were mostly unchanged, but our regional average managed a penny rise.
  • Pipeline shutdowns in the eastern United States are believed to impact Midwestern supplies as eastbound propane backs up. That would certainly prop prices up, and could eliminate the 10 to 20 cents premium in LP prices we have been expecting.
  • However, national propane stocks are currently 25.3% below the five-year average and prices will not fall until supplies rebuild.

Fuel
4/16/18
4/23/18
Week-over Change
Current Week
Fuel
Farm Diesel
$2.37
$2.38
Unchanged
$2.38
Farm Diesel
LP
$1.39
$1.41
+1 cent
$1.42
LP

heatin goil farm diesel spread chart


 

 

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