LETTER FROM THE EDITOR

Dear Readers,

Volatility isn’t an unfamiliar concept to the propane industry. Though weather patterns can be predicted and marketers can plan ahead for supply based on those predictions, no one actually knows what will happen until we’re in the moment. For an industry beholden to unexpected shifts in weather and supply movement, a strategic plan is essential for preparing for the busy season.

But volatility doesn’t just stem from the weather. As we’ve seen throughout modern history, geopolitical concerns also play a major role. I’m writing this letter in the middle of August, and as we go to print, the war with Iran is still ongoing and the Strait of Hormuz remains blocked. On Aug. 18, CBS News reported there is “no ongoing dialogue with Iran to end the war, and no discussions scheduled,” according to updates from President Donald Trump, and “envoy Jared Kushner told Fox News that Iran is ‘not showing any interest’ in striking a deal that ‘makes sense’ for the United States. Nearly six months into the conflict, the U.S. and Iran remain locked in a standoff over control over the Strait of Hormuz.”

CBS also reported that Iran was close to a deal with Oman to manage ship traffic through the Strait. In response, President Trump threatened to bomb Oman because of his disapproval of the agreement. Two regional officials stated “the U.S. believes Oman has not been tough enough in its negotiations with Iran and is unhappy with Oman’s agreement to collect voluntary fees from vessels, even if the charges are related to security and maritime environmental protection.”

Moreover, Iran has stated it is not looking for a ceasefire — only an end to the war. Iranian Foreign Minister Abbas Araghchi stated, “… the war must end in such a way that it will not be repeated.” But with no discussions between the two countries scheduled as of Aug. 18, the outcome remains to be seen.

Though I hope some relief is imminent by the time this issue is in your hands in September, I cannot predict where the movement of crude oil will stand at that time. As such, this issue’s feature section on propane supply covers several different facets of the war and the blockade. It’s important for you to not only have as much information on hand as possible about the situation, but also for you to have access to advice straight from the experts on developing a nimble and robust plan for supply this season. This issue has a plethora of information to help you navigate these often murky waters.

Until next time,