Well, it’s official. The northeast has completed the coldest 20 day stretch since 2015. And like the Patriots returning to the Super Bowl, it’s not over yet! And I was mocked at a 12-5 prediction…
The extreme cold has put pressure on the entire energy sector as the NatGas infrastructure can not handle the demand, forcing duel fired plants to burn liquid fuels. Those fuels have to be trucked into Power Plants creating a workload and logistical conundrum for much of the region. It is no surprise that Distillate demand is at a 17 week high this week. And while it is only a quarter of the Country, it is still enough to keep future pricing higher than it should. Plus, the ongoing rhetoric war with Iran is not giving the market much of a reason to pull back. But like all things, this to shall pass. Warmer temps are expect late next week and there are plans for ongoing Russian and Iranian talks to be held “as soon as the specifics can be agreed upon”. Until then, keep up with the winterization plan, keep the fills and pathways clear, and GO PATS who will win 17-13!