Coming off the Monday Holiday, prices surged higher Tuesday as OPEC+ heavyweights Russia and Saudi Arabia confirmed they would extend voluntary production cuts through the end of the year. Fueling the rise from the Cpt. Obvious department, big banks publish reports to expect $107 Crude if cuts maintain. Buy the rumor, sell the fact. Diesel had a nice sell off going, but remember, one day doesn’t reverse the trend. Wednesdays intraday action erased almost all of the gains only to settle down slightly. While we still sit almost $1 higher in pricing than the beginning of the Summer, you would have to think better days are to come. Current JUNE 24 Diesel future pricing is $.45 less than front month October 23.
For the here and now, we all know $1 a gallon increase cuts into your bottom line significantly, many large airlines have started to float it out there not to expect good earnings due to higher fuel costs. We can assist you in leveling out those spikes based on your specific needs. Inventory numbers due out later today, delayed from the holiday, should give short term direction of pricing. Even if modest drops are reported, I would expect to see the downward trend continue for diesel. Gasoline is still disjointed from Diesel as it is starting to go into it’s seasonal specification switch which tends to push pricing down. Timing is important in the fuel world, having an open line of communication with your supplier is vital. If you want to schedule a meeting to discuss your specific needs or questions, you can do so here: Schedule a Meeting