• Find Us
  • Contact Us
  • Become a Customer
  • Pay Your Bill
logologologologo
(800) 366-0200
  • Fuels
    • Quality Fuel Products
      • Detergent Gasoline
      • BOSS Diesel
      • Renewable Fuels
    • Fuel Contracting
    • Wholesale Fuels
    • Fuel & Oil Analysis
    • Petro-Card 24
    • Credit Cards
    • Become a Customer
  • Propane
    • For Your Home
      • Furnaces & Boilers
      • Water Heating
      • Residential Generators
      • Appliances
      • Fireplaces
      • Outdoor Living
    • For Your Farm
      • Grain Drying
      • Irrigation
      • Poultry House Heating & Sanitation
      • Livestock Barn Heating
      • Agriculture Generators
    • For Your Business
      • Construction
      • Forklifts & Material Handling
      • Landscaping
      • Greenhouses & Nurseries
      • Commercial Heating & Cooking
    • Propane Programs
    • Tank Options
    • Tank Leasing & Maintenance
    • Propane Safety
    • Become a Customer
  • Oils & Lubricants
    • Motor & Engine Oils
    • Tractor, Transmission & Torque Fluids
    • Greases
    • Industrial Oils
    • Other Products
    • Limited Warranty Program
    • Fuel & Oil Analysis
    • Lube Advisor
  • Solar
  • Retail
    • Big O Tires
    • Break Time
    • Gift Cards
    • Credit Cards
    • Become a Customer
  • About Us
    • Co-op Membership
    • Community Involvement
    • Core Values
    • Sustainability Values
    • Board of Directors
    • Executive Team
    • News
  • Careers
    • Current Openings
    • Hiring Process
    • Corporate Offices
    • MFA Oil Field Locations
    • Break Time
    • Big O Tires
  • Become a Customer
    • Request More Information
    • Customer Agreement
  • Fuels
    • Quality Fuel Products
      • Detergent Gasoline
      • BOSS Diesel
      • Renewable Fuels
    • Fuel Contracting
    • Wholesale Fuels
    • Fuel & Oil Analysis
    • Petro-Card 24
    • Credit Cards
    • Become a Customer
  • Propane
    • For Your Home
      • Furnaces & Boilers
      • Water Heating
      • Residential Generators
      • Appliances
      • Fireplaces
      • Outdoor Living
    • For Your Farm
      • Grain Drying
      • Irrigation
      • Poultry House Heating & Sanitation
      • Livestock Barn Heating
      • Agriculture Generators
    • For Your Business
      • Construction
      • Forklifts & Material Handling
      • Landscaping
      • Greenhouses & Nurseries
      • Commercial Heating & Cooking
    • Propane Programs
    • Tank Options
    • Tank Leasing & Maintenance
    • Propane Safety
    • Become a Customer
  • Oils & Lubricants
    • Motor & Engine Oils
    • Tractor, Transmission & Torque Fluids
    • Greases
    • Industrial Oils
    • Other Products
    • Limited Warranty Program
    • Fuel & Oil Analysis
    • Lube Advisor
  • Solar
  • Retail
    • Big O Tires
    • Break Time
    • Gift Cards
    • Credit Cards
    • Become a Customer
  • About Us
    • Co-op Membership
    • Community Involvement
    • Core Values
    • Sustainability Values
    • Board of Directors
    • Executive Team
    • News
  • Careers
    • Current Openings
    • Hiring Process
    • Corporate Offices
    • MFA Oil Field Locations
    • Break Time
    • Big O Tires
  • Become a Customer
    • Request More Information
    • Customer Agreement

All News >> Momentum

View the Summer 2021 Momentum Issue

Lessons Learned from 2020

June 7, 2021

Written By Tim Danze

FacebookTweetLinkedInPrintEmail

The coronavirus pandemic turned our lives upside down. Everyone was affected in some fashion. Now that we hopefully see some light at the end of the tunnel, it’s worth looking back to see what we can learn from the experience.

My biggest takeaway is to take nothing for granted, especially the simple things. Being able to speak with people in person, shake someone’s hand and hug our friends and family are things we’ve all learned to appreciate better.

From a commodities and energy perspective, there were two major forces at play in the past 12 months: the pandemic and the polar vortex. The lockdowns aimed at preventing the spread of the virus killed energy demand, and the frigid temperatures ushered in by the Arctic winds stalled domestic production.

Last year was a perfect example of how prices can change drastically in a hurry. In January 2020, prices on the New York Mercantile Exchange for gasoline futures were at $1.65. By March 23, they had dropped to the COVID-19 low of $0.3760. Prices rebounded from there with steady increases until mid-June 2020 ending in the $1.20 area. Fuel prices traded sideways into the end of the year and have been on another gradual climb to get us to our current price level of around $2.00. Propane prices followed a similar path until the arrival of the polar vortex.

In February, the big freeze brought a majority of the oil and gas production in the United States to a standstill and created a massive surge in demand for propane. Most oil and gas refineries and several utility companies, especially those on the Texas energy grid, could not maintain operations during the historic freeze.

Keep Your Tanks Full

One of the best ways to protect yourself from wild swings in prices like we saw in 2020 is to keep your tanks as full as you can. It’s tough to drive your car or heat your home if you don’t have fuel in your tank. Or, in our case, you cannot sell it if you do not have it. Lumber prices have gone nuts in the last several months, and I heard a lumber buyer say that you want to have it right now no matter what it costs. These are interesting times for sure. Having the product in your hands or your tanks offers security regardless of the price. That’s worth remembering when everyone hopes to hit a home run and buy at the lowest possible price of the year. Timing the market is exceptionally challenging and requires more luck than skill. The better bet is to keep your tank full.

Contract What You Can

We are currently accepting contracts on this coming winter’s propane through our Pre-Buy Program. Historically speaking, this program has proven to be a winning strategy. Look back at how much propane you used last year or what you’ve traditionally needed to get through winter. Knowing this information can help you book a contract for the winter of 2021-22.

I would encourage you to look into signing up for our Auto-Fill program or requesting that your local office put you on a regular route. Taking these steps will have you well prepared, no matter what happens with the weather. People sometimes ask me if propane prices could be lower in winter than in the spring and summer. While that’s certainly possible, trends from the past suggest it’s unlikely. More often than not, contracting now will work out in your favor, especially if we see another winter like we did this past year. No one likes getting stuck with an unexpectedly high bill.

My advice for navigating the ups and downs of fuel pricing is essentially the same. History has shown that buying a percentage of your yearly fuel needs with a Pre-Buy contract is generally a good idea. Again, we don’t have a crystal ball that can guarantee your contracts will secure the lowest prices, but if you stick to this plan, you will likely come out ahead. And when we do run into years with allocation issues or low supplies, a contract offers outstanding protection against volatile swings in the market.

View More Posts on Similar Topics:

  • Market Commentary
    Missouri Lawmakers Pass First Motor Fuel Tax Increase Since 1996
    Beefing Up Learning

    Related Posts

    Fuel Contracting Season is Here
    Propane Contracting – It’s a Hit
    What’s Behind Rising Fuel Prices?

    FIND YOUR LOCATION

    MFA Oil Fueled
    MFA Oil’s Digital Newsletter
    Fueled Subscribe

    Receive Updates

    NEWS

    • Digital Newsletters
    • Press Releases
    • Momentum Magazine
    • Market Commentary

    CUSTOMER SERVICE

    • Become a Customer
    • Pay Your Bill
    • Customer Agreement
    • Gift Cards
    • Safety Data Sheets

    GIVING BACK

    • MFA Oil Foundation
    • MFA Foundation
    • Golf Tournament
    • Community Giving

    JOIN MFA OIL

    • Career Opportunities
      • UHC Transparency In Coverage
    • Selling Your Business

    Contact Us

    Copyright © 2022 MFA Oil Company. All rights reserved. Use of this website constitutes acceptance of our Privacy Policy.

    Share this ArticleLike this article? Email it to a friend!

    Email sent!