Weekly Insights - April 20, 2018


Once again as I sit here looking out the window, depending on where you are, mother nature has dealt us a cruel blow. In the Britton area we did not receive a single flake of snow from the recent storm. The temps are not anywhere near normal, which is not conducive to an early planting season. There is snow on the ground in the southern part of our territory. This will be the first time in recent memory for me that North may be in the field before South. Mike, our south territory LP delivery driver, asked me this morning how late in the spring I remembered hauling heating propane. My response was, “After fifteen years, I think we are right there.”
 
Enough about the weather. Let’s talk fuel markets. As you may remember last week I stated that the thought process was that the markets would make a hard drop after military actions in the middle east settled down. Monday and Tuesday the markets were off a total of 2 ½ to 2 ¾ cents. And then comes Wednesday with an uptick of 3 ½ cents effectively erasing the early week downturn. The reasoning behind this is twofold. First, the weekly inventory came out with much sharper draws on all products than anticipated. Second, OPEC is expecting crude to see $80-$100 per barrel. This is a double whammy for the markets. Due to inventory draws, the word on the street is – Can production keep up? I am dead set against buying in an up market but nothing I read or hear leads me to believe there will a big pricing pullback with a late planting season just around the corner. If you have not laid in your spring fuel yet it is time to give FCA a call to see what we can do. Even if buying a portion of your needs now, and the rest later, is an option for you we need to talk about it.
 
On another note…E30. There have been several requests for it. If you are interested, give me a call. We would like to know your tank size and approximate usage. The reason for this is that there are load minimums at the Nustar terminal in Aberdeen. They do not have a tank of E30 waiting to be tapped. It needs to be blended from E10 and straight ethanol. Hence the required load minimums. If you are a current user or are thinking of trying it give FCA a call to see what we can do for you. Once again thanks for your patronage.
 
Brian

This graph, provided by CHS Inc, shows the current trading price of WTI crude this morning. This level hasn’t been seen since November 2014.
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Transport Price Ruby Fieldmaster 7500 gal minimum
Britton Area $2.3456**
Aberdeen/Groton Area $2.3215**
Doland Area $2.3456**
Forman/Gwinner Area $2.3448**

**Please call for exact pricing as prices are subject to change at anytime without notice.