Crude Awakening: Fueling Up for Winter's Wild Cards

Future pricing was moderating some until Tuesdays big jump, pushing Diesel futures to the higher end of the current range. The increase came as news that China was increasing their state mandated Crude import limits next year, meaning they see a rebound in demand or their own production facilities are requiring maintenance. Either way, it is seen as a boost for Crude suppliers worldwide. Pricing seems to be tempered from soaring as many are focused on simple fundamentals. At home, Gasoline demand is still off from a year ago and while Diesel is showing a slight increase in needs, its nothing to write home about. We enter into a shoulder season for many, although its tough to think about winter with 80 degree days across much of the region. Maintaining proper inventory levels is key ahead of the winter fuel switch over, which historically happens around December 1st. Our free tank monitor program can assist you in this process. Also keep in mind that DKB stocks all varieties of seasonal fuels to ensure proper winterization and can get those products to you when you need them. While a warmer, less wet winter has been forecasted again for the Northeast (it’s really like betting red or black at the roulette wheel) it will be interesting to see what that does to Natgas futures and how it will correlate to diesel futures. Theoretically they should both fall. However, my success rate at the roulette wheel is 50%.