The Country Gas, Suburban Gas Services Energy Update …March 2012
Events both in the United States and over seas continue to drive volatility in the oil markets; sanctions by the United States, Britain and Canada due to Iran’s nuclear program has potential to lead to armed conflict between Iran and the West. Worries that Iran may try to block the Strait of Hormuz due to sanctions imposed on them have the energy investors nervous.
The bailout for Greece is finally done, but officials are warning that Greece’s troubles are far from over. Greece’s situation offers a mixed bag when it comes to affecting the oil market. Initially commodities and equities prices moved higher; but this deal will require steep cuts in government spending. The fear is all of the austerity measures will undermine the Greek economy, causing commodities and equities prices to move back down.
The concern with Iran’s nuclear program is currently overriding the concerns of the Greek expected down turn in their economy. With that in mind we expect this to put upwards pressure on oil, and gas. Although propane inventory is well above the 5 year average, expect to see wholesale propane pricing to move up with the relationship to oil.
We have little control over these kinds of events above, but here at Country Gas and Suburban Gas Services we are actively involved in what we can control. On your behalf we are engaged on a daily basis with our trading and transportation divisions to insure stable pricing, uninterrupted product flow, and the best of service to our customers as our nation works through these tough times.
Watch for our 2012-2013 offers coming soon. With the volatility of the market we encourage you to lock in you pricing for next year early.
As always, we thank you for your trust and patronage.
Country Gas &
Suburban Gas Service