A fair amount of news is being reported on how much refiners are making on finished diesel, upwards of $100 per barrel. Recall three weeks ago we mentioned this and with the hope that a supply and demand imbalance could tame pricing eventually. As front month diesel futures reached new highs again this week, it looks like we are fourth and long on that theory and need to punt. Based on recent inventory numbers the bulk of that finished product is being exported as sluggish US demand and backwardation are preventing domestic sales. (We also discussed how this may play out for the Northeast Heating season) Ongoing random drone strikes from several Iranian linked groups in the Strait of Hormuz has kept ship traffic at a crawl and pricing inflated. Still, no official deal has been made. Saudi’s, Kuwait, UAE, and Qatar all seem to be fed up with the inability to move product and you might see mounting pressure to get a deal done in the coming weeks. Once again, critical that your supplier has guaranteed inventory in the coming weeks.