Fuel Futures Rally Amid Rate Cuts & Global Events

Fuel Futures continue to rally from last week as many saw a buying opportunity too good to pass up.  Diesel pricing is about $.10 higher than a week ago and Gasoline is almost $.15 stronger.  Again, the main driver appears to be the rate cut announced yesterday that came in at .50 pts, double than the expected 25pts cut.  The FED statement  of “The US economy is in a good place and our decision today is designed to keep it there." might have calmed some nerves.  With everything going on in the world, one might argue that futures could be two times as high over last week.  We are coming off a storm in the gulf that influenced this weeks inventory report and Israel carrying out what many are calling a new era of James Bond like warfare.  The rain on the Bulls parade is weak US fundamentals, primarily demand, that still lags and is flat at best for finished products.  Traders are also resigned to the fact that China’s double digit demand growth is a thing of the past.  Add in OPEC’s recent decision to open the spigots, we might just stay in this range for the next few weeks.  There is way too much going on in this business to always be on top of the latest drivers, that is where we come in.  With a 24x7x365 dispatch, a Sales staff at your fingertips, and a full Customer Service and Safety team, our goal is to make this side of your business easier and let you focus on your core business.  We are always willing to discuss your specific operation directly.