Price Dips, Tariffs, and Supply Challenges
Future pricing took another dive yesterday continuing the selling rally started last Friday. When the inventory report hit, and saw that exports took a dive, imports remained flat and finished products gained some volume, the pits began a sharp sell off that lasted much of the day. Pricing gained a little back by days end as the severe cold last week across much of the Nation could have influenced the demand figures. Still, the up and down ride of distillate demand has been a hard metric to comprehend. Almost as hard as the looming 10% tariff on energy products set to go into effect March 4th. As mentioned earlier, in some markets that could be an overnight increase of $.25 per gallon at current levels. In addition, as of last night, the cancellation of Chevron’s refining agreement in Venezuela that saw 240,000 barrels per day come into the US, is now set to be gone March 1st. Many thought this would be the avenue to make up for lost Canadian Crude. Not so much. My frying pan hat theory is that this a quid pro quo for an XL pipeline finish and long term deal with Canada. As temps start to moderate, and the snow melt starts to revel the winter wear and tear, please feel free to reach out if there is any assistance we can provide. Our wide network of knowledgeable Reps, professional drivers and Industry contacts are always willing to help.
