Weekly Farm Fuels Bulletin | Farm Diesel Stabilizes as Heating Oil Softens

Posted on 02/06/2018 4:08 PM

 

Farm Dieseldiesel

  • Farm diesel was unchanged on the week although state-to-state price action was very volatile.
  • WTI crude oil appears to be working on confirming a short-term top after March futures posted a daytime high of $66.66 on January 25. While that could signal a downside correction, the more likely scenario is that WTI will establish itself within the current range.
  • Meanwhile, March heating oil futures have wasted no time falling back to the $2.00 area after pressing against $2.14 on Jan. 26.
  • Our farm diesel/heating oil spread indicates mild near-term downside potential for farm diesel.

 

Propanepropane

  • Propane fell 7 cents on the week.
  • Our expectations for propane prices to run roughly 20 cents above year-ago continue to be confirmed, although this week, our regional average price lies just 14 cents above the same time last year.
  • According to EIA, total U.S. propane production was up roughly 100,000 barrels per day from the same time last year, but, overall, supplies are running behind year-ago.
  • In its most recent reporting month, EIA reported an 11% drop in total U.S. propane exports. That was from November and it is conceivable that, given the high rate of production recently and the sharp drop in national temperatures, exports may have continued to fall during December and January.

Fuel
1/22/18
1/29/18
Week-over Change
Current Week
Fuel
Farm Diesel
$2.34
$2.42
Unchanged
$2.42
Farm Diesel
LP
$1.48
$1.48
-7 cents
$1.41
LP

farm diesel heating oil spread chart


 

 

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