From the Energy Team at Central Valley Coop we want to thank you our customers for the opportunity to serve you in 2014! And we are looking forward to working with you in 2015. The start of the new year appears to have a significant question in front of it. The following section from the Van Trump report appears to summarize what we might see in 2015.
Will Crude Oil Prices Rebound or Continue To Tumble? OPEC is saying they believe the slide in oil prices will reverse by mid to late-Spring as demand rises and some key output is trimmed. Kiplinger is calling for oil to climb back towards $70-$75 per barrel by March.
In the wake they are thinking prices at the pump could firm by some $0.40 to $0.50 cents. Keep in mind however, most sources believe a new era of lower prices and less dependence on petroleum imports li here to stay. In fact net imports will fall below 4 million barrels next year, or just about 20% of overall consumption. From my own personal perspective, I believe crude oil prices could continue to tumble into early-2015. Or at least until some of the major producers “cry uncle,” which I don’t see happening anytime soon. Remember, several insiders are thinking the oil markets might be oversupplied by as much as one-million barrels a day. Eventual though the lower prices are going to give way to increasing demand and we will move back north of $70 per barrel.
Source: Kevin Van Trump - Van Trump Report
If you have questions about current fuel or contact prices please contact the Energy Sales team to discuss options for 2015 season.
Mike Keller – 507-649-0383
Steve Lonning – 507-456-7658
Fred Urch – 507-676-7088
Happy New!
Fred Urch
Energy Sales Manager
