Strait of Hormuz Tensions and Texas Refinery Fire Impact

It has been hard to find any good news in the fuel industry lately. Add to that a Texas refinery fire that put offline a 2m gallon per day diesel unit on Tuesday which halted the market sell off seen the day before. The Market is now tasked with trying to identify how much of the 15 point plan to peace is attainable, valid, or even received by Iran. It is largely held that there may be several factions seeking control in Iran, making it difficult to achieve any type of agreements. As some ships start to trickle through the Strait of Hormuz, it still may be a while until we see any type of normalized traffic, as I am guessing it will turn into a fee based passage system. They should put some of those gantry systems like on the Mass Pike!

Again, it is not just oil products that are stuck. Fertilizers, gases, and metals are all hamstrung which unfortunately will show in higher prices on everything from beef to x-rays. The good news is that we may have seen the worst and are in our descent towards more logical pricing. Not to say it will be a free fall by any stretch, still expect huge interday swings, just with an overall downward projection. Better news, DKB is fully supplied and has a team of drivers, dispatchers and Customer Service Reps working hard to keep you operational. As the spring clean up and ramp up starts, we are alongside you and always available.