Dennis K. Burke, Inc. Market Updates

Energy Trifecta Turbulence

Written by Mark Pszeniczny | Nov 20, 2025 1:00:03 PM

The trifecta of energy markets, Crude, Diesel, and Gasoline, typically march in lock step with one another.  That is, the finished products like Diesel and Gasoline usually trade in correlation as to how Crude trades, with some seasonality variances.   At present, old man Crude is relatively inexpensive trading around the $60 per barrel level.  Diesel shown below, surged $.20 higher than this time last week.   While Gasoline is slightly less a week ago as it heads into a lighter demand season.  Wednesdays large jump on finished products came as an overreaction to unexpected refinery issues and technical transactions (times when preset buy or sell limit initiate).  Add to that renewed pressure from the US to force Russian oil conglomerate Lukoil to sell its international assets, spooked traders into buying finished product. However there is still a  flotilla of Crude at sea, and forecasted demand weakness is keeping Crude pricing soft.  This creates very strong refining margins for producers, who will now rush to capture and thus overproduce for demand, then we have excess inventory.  What happens when you have more product than the needs of demand?  As snow has already hit some parts of the Northeast, always a good time to make sure fills are properly marked and in working order.