The energy markets throughout the month of July mirrored June’s sideways trading trend.  Prices continued to move up and down in tandem with the stock market and U.S. dollar.  Fundamentals are still bearish with stock supplies higher than last year at this time.     

Factors affecting market:

• Crude oil prices stayed within the $70 - $80 range the entire month of July.  Technical chart stops remain at $80 and many attempts to move higher have failed so far. 

• Gasoline prices stayed within a fairly narrow range all month.  Prices tried to work higher as usual during the summer; however, supplies are adequate and extra demand has not materialized.

• Diesel prices have tried to move up in anticipation of summer cooling demands to run power plants, and pre-seasonal fall price increases but rallies have stalled at chart resistance.  Stock supplies remain above average.

• Propane prices hit a season low in July but then firmed up slightly.  Supplies are building just shy of last year’s record inventory.  Prices will be higher than last year.

• Market re-cap:   Prices again traded sideways within a range during the month of July; however, at month end they were at the upper end of the range.  Prices have tried to push higher but bearish fundamentals, more than adequate stocks, and lack of demand have kept rallies in check.  Prices move up and down daily mirroring the equity markets; paying no attention to supply and demand.

• Outlook:  Prices will stay range-bound until some catalyst occurs to make them move.  Just as a hurricane in the gulf will move prices higher, any negative economic news will move prices lower.   

Advisory:  Prices have fallen back to midrange from the February low/June high.  Cash prices remain lower than fall contract prices.  Customers should consider filling on any price dips.