Weekly Farm Fuels Bulletin | Fuels Face Pressure

Posted on 02/16/2018 1:31 PM

 

Farm Dieseldiesel chart

  • Farm diesel fell this week under the weight of a decline in heating oil futures.
  • March heating oil futures fell 13.7% from the late-January high close at $2.12 to twice test support at $1.83 before reversing higher, currently (noon 2/16 CT) at $1.91.
  • WTI crude oil has acted similarly, falling 11.2% from late January before placing a short-term low around $59. WTI has since begun to creep higher.
  • Refinery runs have been strong and rig counts are climbing slowly as investment dollars cautiously flow into drilling operations.
  • Expect U.S. distillate supplies to continue to climb for a short time, lending a pre-spring opportunity to book.

Propane

  • Propane prices continued lower this week.propane chart
  • This week's mild temperatures will help keep the pressure on LP prices.
  • It is important to avoid complacency when it comes to your on-farm supplies. It is still the middle of February, and a cold snap is a near certainty for someone, somewhere in propane country.
  • According to EIA, national propane stocks fell 3.296 million barrels last week, now 7.499 MB below year-ago but still roughly at the midpoint of the five-year average range.

Fuel
1/29/18
2/5/18
Week-over Change
Current Week
Fuel
Farm Diesel
$2.42
$2.42
-4 cents
$2.38
Farm Diesel
LP
$1.48
$1.41
-1 cent
$1.40
LP

spread


 

 

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