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Well, That escalated quickly. Since news broke early Saturday morning of the joint US-Israeli strike on Iran, ULSD futures are up over $1.00 and Gasoline is up roughly $.35. Everyone has asked why ULSD much more than Gasoline. The partial answer is three-fold.
Futures markets surged higher yesterday on both a breakdown of Ukrainian-Russian talks along with naval “exercises” by Russian and Iranian fleets next to the Straits of Hormuz. A long talked about chokepoint in shipping and oil movements, any stress in that region will trigger panic buying. Good news is that east coast cash prices for products did not move has high as futures, which is reflected in your pricing. Still Diesel futures sit roughly $.50 higher than early JAN, touching the very top end of the range. Warmer temps into the Northeast are also helping to ease physical pricing as product movement and usage gets back to a normal pace.
There is light on the horizon. It finally appears that the Northeast is making its way out of the longest severe cold stretch in over 10 years. Not to mention some heavy snow accumulations throughout the region. During this period we saw Natgas spike forcing most power plants into curtailment relying upon fuel oils to produce electricity, terminal ports needing ice breaking ships to allow offloading of product, four hour loading lines at terminals, and every fill cap north of Baltimore frozen. Lingering effects persist with Kero pricing remaining very high as seasonal stocks start to dwindle. With the predicted warm up, we hope to see some return to normalcy in the next few days.
Well, it’s official. The northeast has completed the coldest 20 day stretch since 2015. And like the Patriots returning to the Super Bowl, it’s not over yet! And I was mocked at a 12-5 prediction…
My mother always said “some things are better left unsaid”. Topics like Religion, your In-laws cooking, or desire to annex Greenland. Typical stuff. As the week started,...
The period between Christmas and New Years is historically a calm one in the fuel markets. Traders tend to balance out positions, end user demand dips with time of and...
Like most things, it has taken me a while to catch on. (except the bold 12-5 Patriots prediction) But I think I may have finally understood what the new obsession with...
In a world of online shopping and self-checkout, we often lose sight of the things that really matter. We got to this place because of our hectic lives, be it at home,...
It is very rare to see the markets drop going in to a long weekend. Wednesdays dip capped off a six day free fall for diesel pricing that saw roughly $.25 get erased,...
The trifecta of energy markets, Crude, Diesel, and Gasoline, typically march in lock step with one another. That is, the finished products like Diesel and Gasoline...