Distillate Prices Hit Year Low

Front month Distillate prices are now at the year low, retracing all the way back to where we sat last JUNE.   Grabbing a slice of Q4 and Q1 gallons at these levels seem prudent as outer months are relatively flat compared to what we have seen in the last two years.  Inventories of finished product was relatively flat while demand figures have now cycled through and are showing slight increases over last year.  Meaning, demand is still soft but slightly better than last year at this time.  We assumed we would be in a range for a few weeks as we are awaiting rate cuts and military action in the mid-east.  While it is still widely expected for cuts to be announced in the coming weeks, the lack of “official” retaliation by Iranian forces towards Israel is somewhat of a surprise.  Iran seems content with letting its step children in Houthis & Hezbollah take the lead on seeking retribution, although my spidey senses tells me that something is in the works.  As the kids return to school (THANK GOD!), and many enter in that final summer push, remember we are not out of the woods just yet.  Hurricanes are still very active in September & October and supply can get tough with seasonal changes.  Having a supplier with guaranteed, owned inventory is crucial this time of year.  One that can monitor your inventory for you is even better.