We are in the heart of an early peach season in Colorado. In fact, according to the Denver Post article entitled, “Palisade Peaches Ripen Early Because of Colorado’s Heat Wave,” peach season began a little early this year. Peaches are everywhere right now and my kitchen is stocked up!
You see, many things in life come down to one simple concept: supply. When life gives you peaches, make peach pie.
Several folks have asked me why I haven’t been adding to the “Recipe Box” portion of the blog recently – the truth is, I have not been baking much. My heart has just not been in it lately, which is unusual for me.
That all changed when Palisade Peaches flooded our farmers markets and grocery stores early. I was like a kid in a candy store when I saw the beautiful fruit filling the stands; needless to say, I am up to my ears in peaches in my kitchen. I may even start canning some peach jelly!
Colorado Public Radio refers to Palisade Peaches as “the Western Slope’s premiere fruit crop,” and I must say that I agree. According to Colorado Public Radio, “[w]hile most of Colorado is too hostile for fruit production, Palisade’s microclimate and natural air drainage allows peaches and other stone fruits to flourish.”
Sometimes things come together perfectly and you get wonderfully juicy and sweet peaches. Sometimes things come together and the energy industry starts adapting to the price environment and creates technological efficiencies that help them operate profitably during rough times, despite high OPEC crude oil supplies.
According to Bloomberg’s article today entitled, Oil Creeps Toward $50 as Investors Focus on U.S. Supply Data, “[d]ata from the Energy Information Administration showing a decline in U.S. inventories and a rise in fuel demand helped prop up prices for a second day. Nationwide crude inventories slid by 1.53 million barrels last week, while gasoline supplies fell for a seventh week, the data showed.”
That’s right – domestic crude inventories are decreasing slightly. They are not decreasing as much as folks thought they would, but supply is declining.
According to an article in Oil and Gas Investor entitled, EIA: US Crude, Gasoline, Diesel Stockpiles Fall, “[c]rude inventories fell by 1.5 million barrels (bbl) in the week to July 28, compared with analysts’ expectations for a decrease of 3 million bbl.” It also reported “U.S. crude imports rose last week by 537,000 bbl/d.”
Even the New York Times weighed in on oil supply today in its article entitled, Oil Rises as Tighter U.S. Market Outweighs OPEC Supply, which stated, “[t]here are signs that the oil industry has adapted to an era of low prices and can produce and operate at levels that would previously have been uneconomic” and that many analysts are saying that “[a]mple supply is likely to keep a lid on prices.”
The takeaway: in peach pies and the oil markets, supply is a determining factor.
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