Special Friday Edition: Global Tensions & Insights

Welcome to a special Friday edition of the weekly update. It has been a wild week with fuel pricing as we moved out of a comfortable range that was roughly $.20 lower for diesel futures just four days ago. (see 5 day chart below). While many thought that a Longshoreman strike would affect pricing, as I mention to some, they typically handle container or finished goods, not fuels. The strike seemingly has ended with reports last night of an agreement. As news broke Tuesday morning that Iran once again fired over 200 missiles into Israel, the interwebs were reporting a “crack” in their famous Iron Curtin. However, as daybreak came, much of the night time flashes seen were actually fragments of intercepted artillery. Still, several military installations within Israel were hit with casualties, and the US imposed more sanctions on Iranian shipping in an effort to curb more strikes. With Wednesday’s Inventory report showing a massive drop in distillate demand, down 4.6% to last year, futures erased much of the previous days gains. Thursday brought a new round of buying as remarks from the President suggested that the US and other Nations might be OK with letting Israel retaliate with strikes on Iranian Oil production facilities. A sharp turn from the last several weeks that had Oil and Nuclear sites within Iran off limits. While up this morning a little, I would expect some cooling off in the next few days as hurricanes appear to be moving far away from Mainland US and the rush towards a diplomatic resolution of the ongoing middle east conflict. As always, we are here to talk and asses your specific needs.