Silence Speaks as Loud as War

Tuesdays price drop in diesel slid us back into the middle of the range we have been in this month.  I expect a fair amount of back and forth to continue as markets weigh both fundamental factors like supply, demand, and unrest as well as the influence of political announcements.  Most recent has been the anticipated move to double tariffs on India in retaliation for buying Russian Crude.  With no real peace deal made between Russia and Ukraine after the Alaskan meeting, the hand was almost forced to implement the new rates.  Both Indian and Russian officials had no real reaction to the announcement.  But “silence speaks as loud as war”  (tough one… DKB hoodie up for grabs).   Although energy and steel products are exempt from tariffs, the overall implication of slowing global demand should push pricing down.  Add to that the fact the US durable goods (high priced, long lasting items) orders are down 10% in the last two months might support the slowing theory. But leave it to an anomaly,  like distillate demand, showing 8% increase over last year which was reported yesterday to support pricing.  Sounds crazy, its never too early to be thinking about your winter needs and plan, as always, we can assist.