After a brief cease fire between the US and Iran early this week, hostilities resumed pushing oil markets to fresh highs. Finished diesel and gasoline are now close to levels we saw in early March when the war started. What is interesting to point out, at these levels, one would think crude oil to be $125-$135 per barrel, but that’s not the case, it’s $85. A factor of US sourced product, making the ULSD crack spread (value of a gallon of crude compared to the value of a gallon of diesel) at over $90 per barrel, compared to roughly $55 to make gasoline. That will and has pushed refiners to produce more distillates recently, which are starting to show in weekly inventory numbers. How that tames finished pricing down the road still remains to be seen. Theory being, more inventory, lower demand, lower pricing. The caveat may be the steep backwardation from one month to the next preventing some from carrying inventory. While it may feel like your swimming on Cape Cod with a pack of seals, (love shark week) knowing your supplier is in your corner can be the lifejacket you need.