Trade Wars, Tariffs & OPEC Moves

In a world where common sense is very uncommon, I would like to believe that the collective brainpower of the oil markets still have some remaining.   We say all the time that there are a myriad of influences on price movement, from wars and weather to algorithms and charts, all impact our daily lives with how fuel is priced.  Distillates are down about $.25 since the beginning of the year and only about $.10 off the lows prior to that.  So is the market correcting what the impact of a 10% tariff would amount to?  In other words, would we be paying more now than two months ago?  Markets are falling as demand lags and uncertainty sets in, as we wait to see what the outcome of a Trade War will produce.  Ironically, OPEC+ threw a bone with a surprise “increase” in production quotas of 138,000 BPD pushing futures down even more.  If you lose a big customer, the first thing you do is go out and find more.  That’s what Canada and Mexico are doing, courting European and Asia buyers.  U.S. buyers will source more domestic options for their needs.  There will likely be some turbulent times ahead of us in the next few weeks, barring any repeal.  Being able to pivot as an organization will ultimately judge success.  We are working day and night to provide you the service and information that you expect from DKB.  Because that’s just common sense.