Tensions Rise as Prices Surge

Special Friday edition!  Last week we said fuels were at a pivotal stage and could see some downside.  Well, like the Weatherman, it was 50-50 shot.  In diesels, we are once again at the high end of the range even with the month change.  Unable to break below the magical $2.60 level, we have increased $.17 in a week as increased tensions overseas and supply fears overshadow demand figures.  Diesel demand still sits about 4% lower than last year.  Regionally, we looked to be gearing up for an early summer, but Mother Nature had different plans dumping over a foot of snow in some places yesterday.  But alas, it looks to be in the 60’s for much of the region in the coming days.  (ask us about all our packaged fuel specials for your small engine needs).  With the Israeli Prime Minister showing no signs of scaling back retaliatory strikes into Iran, along with the misfire on aid workers in Gaza, there is a real fear conflict will spill over into neighboring countries, thus supporting higher fuel prices.  At some point I would hope that traders to look at the fundamental aspects of fuel and realize demand loss is real and that maybe inventory levels are resetting to a new normal.  Until then, we will continue to ride this wave of the $.20 range.