Heating Oil Futures Fall, Diesel to Follow

Posted on 03/20/2020 11:13 AM

farm diesel price chart

Farm Diesel --

  • Our regional average farm diesel price fell this week on a 30 cents per gallon decline in Ohio. Minnesota dropped 2 cents and Iowa shaved off a penny. Michigan was our only gainer on the week, up just a penny per gallon. All other states were unchanged.
  • According to EIA, national distillate stocks fell 2.9 million barrels in the report week ended March 13. Stocks are currently 7.1 million barrels below the same week last year.
  • Our heating oil futures/farm diesel spread is at the widest level we have ever recorded signaling downside potential for ruby red (see chart at bottom).
  • This morning, Friday March 20, Front-month April WTI Crude Oil futures opened at $24.73,propane price chart down $18.97 from the first day of trade in March.
  • Given the recent declines in crude oil and heating oil futures, we are in no hurry to book more spring and summer supplies. We are currently 50% filled on spring needs. For the time being, we will wait for prices to soften further before issuing updated advice.

Propane --

  • Our regional average propane price firmed a nickel on the week with Ohio up 53 cents per gallon as Michigan firmed 5 cents. Minnesota LP softened 2 cents per gallon. all other states were unchanged.
  • EIA reports national propane stocks fell 300,000 barrels during the report week. Stocks remain 15.620 million barrels above the same week last year.

Fuel
3/2/20
3/9/20
Week-over Change
Current Week
Fuel
Farm Diesel
$2.33
$2.34
-3 cents
$2.31
Farm Diesel
LP
$1.47
$1.46
+5 cents
$1.51
LP

 

heating oil futures farm diesel spread chart

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