Markets Reel over Tariff Drama

To say I am confused, while easily done, is an understatement.  I would suggest that most market players are as well.   We have seen about $.30 get erased in the fuel pits the last week, all based on what was to be the fallout from US imposed tariffs, foreign countries tariffs, and reciprocal tariffs. 

At precisely 1:15pm yesterday, the announcement that Reciprocal tariffs would be paused for 90 days sent ULSD futures skyrocketing higher $.10 in less than 10 minutes.  With the bulk of the free world apparently now willing to negotiate, trade partners are now put on “double secret probation” while we figure out what our policy will actually be.  China appears to be exempt from this stay, as all tariffs remain.  So as I see it, the 10% tariff is still in place for everyone  except Mexico and Canada, with a carve out for energy and mineral products.  Maybe all of this is just to strong arm China to the table.   More importantly, at home, the effects of “tariff, baby, tariff” have undermined “drill, baby, drill”.  With Crude pricing hovering around the $60 level, it makes it that much more LESS appealing to drill or explore due to high cost of doing so and an uncertain future of now friendly policies.

  All in all, the last week has changed a lot on how we think towards the future.  From retirement dates for some, projections on next years budgets or needs, even work on the books for this year.  We are always willing to discuss your specific needs and the best approach to manage them.

Mark Pszeniczny

Director of Sales

Dennis K. Burke, Inc

C: 617.461.0103

O: 617.830.8828