Weather, Inventory, & Winter Preparedness

Diesel futures have lived in this wild $.20 fantasy range for the last week having 3 out of the last 5 sessions show swings of $.10 or more, now settling about $.10 higher than last Wednesday.  Even though Hurricane Milton’s path was a distance from any Oil Platforms in the Gulf, many have been evacuated since Helen hit over a week ago as a precautionary move.  This will likely show in inventory numbers in the coming weeks.  However, this week's report showed a substantial increase in Crude Inventories, roughly 1.5%, although losses in pricing was tempered by a sharp uptick in demand for both gasoline and diesel.  With both products up over 10%, it might be considered somewhat of an anomaly based on recent trends and again may be storm related.  You can't help but notice the crisp morning air lately, and yes, its coming.  We talk a lot about winterization of fuel and the importance of a proper program.  With the last few winters somewhat mild, and this years predictions of “a warmer than normal winter with less than normal precipitation” , it is easy to become complacent.  Complacency is the enemy of success.  That is why we have already bolstered our stocks of kero throughout our footprint.  It only takes one cold weekend to ruin an entire winter.  It is also a great time to do fall cleanups on tanks, fill covers and access points.  Please do not hesitate to reach out if there is anything we can assist with.