The oil markets are starting the week off climbing. Crude is up almost 3 percent this morning on a report released by Goldman Sachs stating the surplus of oil has turned to a deficit. Although this is most likely to be a short term deficit, Goldman reports expect Crude to remain near $50/bbl through the remainder of 2016. Crude is currently trading just under $48/bbl, and should it reach 50, producers and explorers will all come on board and produce the market back into a surplus I no time.

Gas (WTI RBOB) and Diesel (WTI HO) are both up today around 4 cents/gal. depending on the EIA’s inventory numbers we could see another jump Wednesday. I would not recommend buying futures or locked in pricing on this climb as it doesn’t have a long term supporting factor. Give it a month or so (Ceteris paribus), and we will see a return and leveling out of Crude around $40-45/bbl.

Propane prices have been climbing fast as well, up almost 10 cents since a week ago. Propane exports are at all-time record highs, exporting 30 million bbls out of the Gulf Coast this past month. Propane inventories in the Midwest are nearly 100,000 bbls less than they were a year ago at this time, which could drive prices higher should they continue to lag