Bullish and Bearish Factors at Play

Diesel pricing sits about $.10 higher than a week ago, suggesting that the 2.30 mark is a key support level.  Future pricing will likely remain in a tight range for the next several sessions as it weighs the conflicting Bullish and Bearish news and data.  What is interesting now is that both, news and data, have elements of each side of the sentiment.  Core inflation (minus food and energy pricing) slowed to its lowest rate since April 2021sitting just at 3.2% setting up for what most believe will be a rate cut in September.  Gasoline demand jumped up 2.2% over last year which surprised many in this weeks report.  The Geopolitical risk that remains as Iran contemplates when and how it will retaliate on Israel has many buyers covering in the event of mid-east supply disruptions.  All are factors that should push futures higher.  On the flip side, China has reported much lower refining output and imports, suggesting that worlds second largest economy is still struggling.  US crude stocks showed a surprise increase and distillate demand is still down about 2.7% over last year, has traders cautious on owning too much.  It will be a tug of war over the next week or so as all this plays out, please do not hesitate to reach out to discuss your specific Q4 and Q1 needs.