“It’s the Same Old Story, Same Old Song and Dance”

As it has been said, “It’s the same old story, same old song and dance” specifically to the Oil complex.  The trident of fundamental influences on the market over the last year remains firmly in place.  World tension.  This doesn’t appear to be going away anytime soon as a “successful” Houthis attack in the Red Sea this week on a Greek vessel (that left no injuries or substantial damage) caused futures to rally briefly.  Ironically, that vessel is now docked in an Iranian port.   Domestic Demand.  This still continues to lag as both gasoline and distillates showed increase in inventories with demand figures still off over 2%.  This is raising concern that OPEC+, which meets Sunday, may cut further production levels.  Most still believe they will maintain levels for the second half of the year.  Last, Interest Rates.  We initially expected rate cuts to begin right about now, but continued comments by various Regional FED officials signal that there is no rush to begin cutting rates.   This was likely a key driver in yesterdays sell off.  We are slightly below that tight $.10 range we talked on diesel last week, rolling into a new month we should slide back into the comfort zone.  It’s go time for many of us right now, and I can not stress enough how important it is stay on top of the little things.  Correct tank Labelling, working fills and tank whistles, access points, all these and more help in the smooth delivery operation as well as satisfying Compliance requirements (inspections typically don’t happen in cold weather).  I personally field dozens of calls a week on tank and fueling set up requirements and am happy to assist.  If you have any questions, please do not hesitate to reach out as our Drivers, Safety Staff and Sales Department are always willing to help.