Tariffs, Fuel Prices, & Trade: Ripple Effect on Canada & Mexico

All Markets appear to be on edge as they try to figure out what the actual effect of tariffs would be with Canada and Mexico, if they are ever more than just words.  Fuel is simple, it will increase 10% in certain regions of the country, another joy about living in New England!  But it goes deeper, with many of the product or services we rely upon daily, having roots in our neighbors, the ripple effect could be alarming.  Future pricing,  which appears to be assume the worst for fuels, continues the downward progression, now less than $.10 off the low in early DEC. An unexpected dip in Core inflation (no food or fuel) dropped 2 basis points to 3.1%, holding futures to remain positive on the day.  A mixed inventory report  showed an increase in Crude stocks,  but a drop in gasoline and diesel, that kept the market in check as the focus is now on the outcome of today’s Trade meeting between Canadian and US officials.  Additionally, with reports that Ukraine is now willing to enact a 30 day cease fire with Russia, some more softening in future pricing could be in the cards.  With the ever changing dynamics of the fuel world, it is important to keep in close contact with your supplier.   They need to have the product, the trucks to deliver, the Team to execute and mindset of Customer Service excellence in order for your operation to run smoothly.