Light on the Horizon

There is light on the horizon. It finally appears that the Northeast is making its way out of the longest severe cold stretch in over 10 years. Not to mention some heavy snow accumulations throughout the region. During this period we saw Natgas spike forcing most power plants into curtailment relying upon fuel oils to produce electricity, terminal ports needing ice breaking ships to allow offloading of product, four hour loading lines at terminals, and every fill cap north of Baltimore frozen. Lingering effects persist with Kero pricing remaining very high as seasonal stocks start to dwindle. With the predicted warm up, we hope to see some return to normalcy in the next few days.

Future pricing remains doggedly high as just about every national headline has “oil” in the story. Iran, Cuba, Mexico and Venezuela dominate the cycle and the harsh rhetoric is not calming any nerves. We talk about it every year and we typically see a February thaw in pricing, hopefully this arrives sooner rather than later. It could happen fast so keep an eye out for Q2-Q4 buying opportunities. It has been a long last 30 days, and I have spoken with many of you often. Communication is key and we are proud to be able to support your operation even through the most difficult of times. Look on the bright side…. Pitchers & Catchers report today!