Stuck in Sideways

Sideways is the best way to describe the 20 days in the fuel market.   Diesel pricing has been stuck in a $.10 range, unable to break below the $2.60 support level.  Traders are digesting a variety of news be it Inventories, demand, world conflict as well as overall economic health, none of which seems to be pushing us in a general direction.  What used to be typical this time of year, it has been several years since we had the shoulder season conundrum.  Even though we are rangebound, the daily swings are sometimes hard to handle.  A fixed price program always helps in mitigating those daily swings and normalizes your pricing structure.  My gut tells me that we will fall in the coming weeks as I see demand taking center stage.  While some agencies are promoting an “increase” in demand due to higher fuel usage by the shipping industry caused by longer routes around conflict areas, it doesn’t really add up in my mind. (not that a lot does).  It looks to me that while companies are busy, it’s more of a people problem than a work load problem.  DKB is always willing to help you make your days easier, please do not hesitate to reach out to discuss the many options  and services we provide to let you concentrate on running your business.

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