From Summer Stagnation to Winter Prep: Markets Stay Range-Bound

Diesel futures continue to be stuck in this $.20 range since mid-summer, with it’s cousin Gasoline in the same funk.   Economic policy and factors appear to be the driving force of late as the anticipated FED rate cut of a quarter point was announced yesterday.  Citing a weak job market, along with continued impacts on inflation due to tariffs, they also hinted at two more adjustments this year.  FED policy on interest rates have two, seemingly opposite goals.  They must stabilize pricing yet also maximize employment.  Not an easy task.  Lower rates can boost demand, but that in turn would increase future pricing.  Fuel demand continues to be troublesome.  On a year over year basis , gasoline remains flat while diesels are off almost 5%.  Again, it has me perplexed as to why pricing is not where we were in early May.  Tariff talks with China are at a stalemate, and with the US continuing to pluck Venezuelan drug boats out of the Caribbean, we may be in for a longer stay at these levels.   But as we start to think about pumpkin spice lattes and raking leaves, be reminded that we are knocking on Q4 and cold air.  Its never to early to start thinking about winter operability and next year’s fuel needs.  We are already gearing up, and our Reps are ready to assist in making it a smooth winter for your business.