We had a nice $.10 pullback going from Friday to Tuesday, but the market giveth and the market taketh. After another 2.2-million-barrel draw in crude inventories posted this week, the entire complex moved higher even with gas and diesel showing slight increases. Furthermore, product demand showed down again year over year by about 5%. A fair amount of talk and politicizing of a looming Government shutdown will have on financial markets and heavily regulated industries like air travel. All providing support to pricing. Still, it looks as though we may have topped out in the last few weeks as we move into the winter season.
I know it's tough to think about winter right now, but it’s coming. It’s widely agreed that we have moved back into an El Nino weather pattern, which for the Northeast means typically more snow and very cold January and February (good time to get fillports, ladders, and access to tanks colored, cleaned and repaired). Looking into winter months, some may be challenged on many fronts. It looks as though security of demand is the key factor in security of supply. With pricing still sharply backwards, you may find some suppliers not willing to bring in excess gallons or niche product such as Kero, that are not already spoken for. Have conversations now and be sure you and your supplier are on the same page. DKB is acutely aware of our customers' needs and as in years past, have your needs first. As always, feel free to reach out. (You can reach out by phone, or schedule a call at a good time for you using this link: Schedule a Call )