Farm Fuels Bulletin | EIA Fuels Bearish Sentiments

Posted on 06/12/2019 12:59 PM


Farm Dieselfarm diesel price chart

  • Our regional average farm diesel price fell a penny per gallon this week.
  • Nine of the twelve states in our survey registered price changes. Nebraska added 4 cents, Michigan fell 6 cents and Kansas diesel fell 15 cents on the week.
  • WTI crude oil prices were generally lower on the week as oil market watchers note pessimism regarding near-term world economic growth and respond to the implications for world demand.
  • Heating oil futures are lower as well since the mid-May highs, but right at steady on the week as of this writing, Wednesday, June 12.
  • The Energy Information Administration released its June Short-term Energy Outlook this week. The big takeaway is EIA's forecast for U.S. crude oil production to continue to increase through 2020, reaching a projected average of 13.0 million barrels per day in that year. That will add to longer-term bearish sentiments if realized.propane price chart
  • Also according to EIA, national distillate stocks fell 1 million barrels in the week ended June 7, 2019 but remain 13.7 million barrels above the same week last year.


  • Propane was unchanged on the week amid scant state-to-state price moves.
  • Nebraska and Kansas firmed slightly. Iowa fell 4 cents per gallon and Minnesota and Missouri were each off a penny on the week.
  • According to EIA, national propane stocks firmed 2.862 million barrels, now 20.289 million barrels above the same week last year.

Week-over Change
Current Week
Farm Diesel
-1 cent
Farm Diesel

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.

This week, our spread analysis indicates ongoing downside potential for retail farm diesel.

heating oil farm diesel spread chart


Add new comment