Tariff Exemptions and Weak Demand Drive Diesel Downward

In the last four days Diesel futures have fallen harder than Shedeur Sanders on draft day.  Losing about $.14 in value this past week, we mentioned that the focus would be on tariffs and the economy, along with demand data.  As the announcement of giving auto makers an exemption on parts imported from additional tariffs circulated, and widespread speculation that demand for finished gas and diesel is likely going to remain low, the sell off pushed futures back to where we were the beginning of April.  Sparking further selling was the US economy contracted in Q1 for the first time in over 3 years.  And as of late last night, it appears that a starter deal has been reached with Ukraine on their mineral rights.  A deal that was supposed to be ironed out in February with the now famous White House-Zelensky spat on live TV.   With a US presence in Ukraine, the idea is it will force Russia to the table to end the ongoing war.  What the outcome will be, is to be seen.  Markets, especially fuel, are extremely volatile.  Having a robust, knowledgeable and accessible Supplier on your side is crucial to your business.