Markets Surge Amid Escalating Middle East Tensions

 It was just 10 days ago we were feeling pretty good to seeing sub $3 diesel pricing. This morning I feel like Kevin Bacon’s character in the final scene of Animal House telling everyone to “Remain calm, All is well!” As Iranian drone strikes on Hormuz crossing vessels ramped up, the US resumed the policy of bombings will continue until desired results are achieved. Effectively calling off the cease fire, markets surged yesterday with Diesel up $.35 and gasoline up $.15. Recall several weeks ago we mentioned the difficulty in negotiating a peace deal with Iran now, because those doing the strikes may not be the same group we are negotiating with. Its precision guess work based upon unreliable data provided by those with questionable knowledge. Domestic demand will be key for the remainder of the summer, distillates got a holiday bounce last week, but gasoline was down considerably on an annual basis. If demand continues to wane, eventually markets will have to acknowledge the reality. With forward month economics prevent some from shipping in finished product, you wont find that DKB. We remain fully supplied and staffed to serve your needs no matter the situation.