LP Issues 'Fair Warning' as NWS Predicts a Wet Fall

August 15, 2013 06:54 AM
 

The National Weather Service Climate Prediction Center expects aboverainyday-normal precip for September through November, which signals strong potential demand for dryer fuels at harvest. (Read more) We advised two weeks ago to take a look at your local prices for natgas or LP in anticipation of increased demand.

LP -- current LP pricing is up 3 1/2 cents from the previous week at a regional average of $1.377. Nebraska popped 15 cents last week with Kansas adding 11 cents of its own. Next week could show similar increases across the entire Midwest.

Check local pricing today as the market appears to be giving us fair warning here.

Natgas -- Positive storage news is keeping the lid on natgas pricing along with strong WTI crude production. Current pricing lies at $3.39 and creeping higher. We see less upside risk here than in LP, but have advised natgas users be 80% full by now. If you have yet to start filling expected fall needs, now is the time to get aggressive. Cooler temperatures are expected to prevail so power burn for air condition will be light. This will help limit price potential, but Brent crude pricing is moving higher suggesting OPEC producers will ramp up sendouts. That may force WTI lower opening the upside for nattie.

Precipitation through the next few months is expected to run above average, and that will mean increased demand for dryer fuels at harvest. Manage your risk and be prepared. As always, local prices will vary so check with your preferred supplier and get caught up to at least 80% filled today on natgas or LP. See the map below...

 

90dayprecip081513


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