Positively Charged Energy News: March 2024 Commentary
In March, OPEC+ announced the extension of additional voluntary cuts of 2.2 million barrels per day through June, aimed at stabilizing and balancing the oil markets. These voluntary cuts were in addition to the voluntary cuts previously announced in April 2023 and later extended until the end of 2024.
Meanwhile, according to our International Energy Statistics, US crude oil production hit a record high in 2023, more than any nation at any time, for the past six years in a row.
Heating Oil: The average price for a gallon of heating oil on the East Coast was $4.064 in March, a $0.132 increase from February and an $0.11 decrease from a year ago.
Gasoline: The average price for a gallon of gasoline on the East Coast was $3.415 in March, an $0.112 increase from February’s average and a $0.025 decrease from a year ago.
Diesel: The average price for a gallon of diesel on the East Coast was $4.131 in March, a $0.036 decrease from February’s average and a $0.199 decrease from this time last year.
Propane: The average price for propane on the East Coast was $3.433 per gallon in March, an increase of $0.021 from February and an increase of $0.05 from a year ago.
Natural Gas
The April 2024 NYMEX Natural Gas contract closed at $1.575/dth, $0.04 below the March close and another close near the 15-year low. Ample gas production against this weather has caused a persistent storage surplus all winter long that only grew as the season ended. It may be difficult to see material improvements in price levels until we begin to see summer heat in the June – August period.
The NYMEX 12-month strip rose the first week of March for the second weekly increase in a row due to differing supply and demand signals. But the increase didn’t last as prices dropped for the remainder of the month.
With strong storage surplus levels, weak demand and decreasing production levels not yet really impressing the market, March looked like a rerun of February as nothing in the fundamental picture changed enough to move prices significantly.
Looking ahead, some expect production to continue softening into the summer, based on comments from producers regarding potential reductions. However, in a longer term demand impact, some producers have recently stated optimism about the future demand for natural gas related to data center needs as AI technologies continue to develop.
NYC Local Law 87 requires buildings 50,000 square feet or more, or multiple buildings on a single lot over 100,000 square feet, to complete an Energy Audit and Retro-Commissioning (RCx) Report every 10 years. The law aims to make NYC buildings more sustainable, energy-efficient, and competitive in the market.
The compliance year is dictated by the last digit of the tax block number. If your tax block number ends in “4”, reports are due by December 31, 2024. Penalties for non-compliance can range from $3K – $5K for every year the assessment is not conducted.
Schedule Your Annual Burner Tune Up and Boiler Cleaning
Spring is here – which means it’s time to get your boiler and burner checked by a professional. Why Spring? After working hard all winter long, soot can build up inside your boiler. If left untreated during the summer months, it can cause erosion in your boiler, damaging your system. \
Backflow Installation, Annual Testing and Repair Services
New York State requires an annual inspection and test of backflow prevention devices. The testing must be completed prior to the anniversary of its installation, and must be done by a NYS Certified and Licensed BFP Assembly Tester. Penalties could be $300 per year and/or termination of water services.
NYC Local Law 152
NYC LL152 requires gas piping systems in all NYC buildings (except buildings classified in occupancy group R-3) to be inspected by a Licensed Master Plumber (LMP) or a qualified individual working under the direct supervision of an LMP, once every four years. If your building does not contain a gas piping system, you are still required to file a certification from a registered design professional that the building contains no gas piping system.
