The trend to lower lows every 15 days or so appears to have subsided. Does this mean the market has found a comfort level for the next few weeks? My sense is that most are still weighing the Global Demand vs Mid East Risk Premium battle that we mentioned last week. Global tensions continue to be elevated as Houthis strikes have reached vessels in the Red Sea, Pakistan has now struck Iranian targets and the war of words between all nations ramps ups. The strike first, speak later motto is what has most on edge. With Inventories set to be released this morning, a day later due to the Holiday, a careful eye will be not just on stocks, but demand, specifically in the distillate sector. While the middle of the Country saw a cold snap last week, here in the Northeast we are starting to get towards more seasonable temperatures. Again, stay the course with Diesel Winterization programs.
Sideways market movements are often the most difficult to deal with. While they do bring some stability to overall costs, the day to day gyrations can leave us scratching our heads. It is important to be in close contact with your supplier and Rep to be aware of what happens throughout the day. More so in the winter as sometimes future market movements do not translate to local physical markets. Schedule a Meeting