Both WTI and Brent crude pricing have retreated relatively significantly since December 31 with WTI reduced by $5.70 per barrel (5.8%) and Brent $3.55 (3.2%). Increased refined product inventories, indications of reduced product demand, the resumption of Libyan crude production and the fluctuation observed in the U.S. dollar are all contributing factors.

A weather related reduction in overall gasoline consumption should translate into a continued downward pressure on gasoline prices while builds in distillate inventories should serve to stabilize diesel and furnace oil pricing over the coming two-week period.

Refined product pricing has been impacted as of late by increased inventory levels generated largely as the result of increased refinery utilization coupled with reduced demand resulting from, in the case of gasoline, bad driving weather, and in the case of heating oil, a recent trend of milder weather.

A number of factors, however, have conspired to exert significant upward pressure on propane prices.  The closure of the Imperial refinery this past fall, the recent storm related closure of the Come-By-Chance refinery in Newfoundland, production issues associated with the Sable Island gas platforms, Eastern Canadian rail shipment issues coupled with record crop drying and overseas demand for propane have dramatically impacted propane wholesale rack pricing in recent weeks.