Politics, Prices, and the Path Ahead

After spending the last few weeks on the sidelines, I have found two undeniable truths.  First ,my disdain for any network news outlook as a source of meaningful content.  Secondly, anything and everything can be politicized to fit a groups agenda.  From the price of eggs, to a first down call in a football game, everyone has an agenda.  Not here folks, we just want to provide you with a no nonsense, simple, unbiased recap or preview of what we see and how we can help your business run smoother.  Diesel Futures currently sit about $.25 higher than the end of December.  While it is about $.20 lower than the high two weeks ago, we still have some value to shed from what appeared to be a buying spree after the last job report showed large increases in new jobs along with new Russia sanctions on world oil movements.  Sanctions that were put in place in the final hours of the Biden Administration that will likely carry over to the new Administration. As a Mid-East cease fire appears to be holding, and Iran in the middle of an identity crisis, one would expect the pull back to continue as World tensions ease.  Even with this weeks strong demand numbers for gasoline and distillates, the FED holding rates in their first meeting of the year, I would be shocked if higher pricing holds much longer.  That being said, the outer months have not seen the increases as much as the front month has, meaning there may be value in Q2 or Q3 fixed pricing.  May25 ULSD future is roughly $.15 less than FEB25.  It’s never too early to think about the spring and your fuel needs, We are always willing to talk.  And hey… Pitchers and catchers report in two weeks!

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