Politics, Prices, and the Path Ahead
After spending the last few weeks on the sidelines, I have found two undeniable truths. First ,my disdain for any network news outlook as a source of meaningful content....
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After spending the last few weeks on the sidelines, I have found two undeniable truths. First ,my disdain for any network news outlook as a source of meaningful content....
The strength of the futures market since the new year is somewhat perplexing. Many originally thought the ushering in of a new Administration would see pricing continue...
Fuel Futures continue to rally from last week as many saw a buying opportunity too good to pass up. Diesel pricing is about $.10 higher than a week ago and Gasoline is...
Front month Distillate prices are now at the year low, retracing all the way back to where we sat last JUNE. Grabbing a slice of Q4 and Q1 gallons at these levels seem...
Diesel pricing sits about $.10 higher than a week ago, suggesting that the 2.30 mark is a key support level. Future pricing will likely remain in a tight range for the...
Last weeks sell off, fueled primarily from a weaker than expected jobs report, once again solidified the bottom of futures pricing. The Unemployment rate rose to 4.3%,...
Several weeks ago I said how I loved the beginning of summer…. We have officially hit the dog days. Grass is burnt, garden needs to be weeded, Yankees are a half game...
Since early June we have seen diesel prices add over $.30 in value, peaking last week ahead of the holiday. We have peeled off almost half of that increase in last 4...
I talk a lot about the short term happenings, inventories, missile strikes, etc. The real key is to look at the long term, minimally the mid-range. While diesel demand kicked up a whopping 10% last week, the four week average is still down by 3.8%. Similar with gasoline demand that showed strength last week, but is still down about 1% on a four week average. As core inflation finally ticked down 2 basis points this week, what are the long term effects, should that trend continue? The FED should start to cut interest rates, slowly over time. Lower borrowing costs typically stimulate an economy, thus pushing up demand for fuels, and higher prices. We are about $.15 higher on diesel pricing than we were last year at this time, and spent much of the early summer in a tight range, we may have some downside left as war premiums are shed.
In what should have been the start of a nice 3 day pullback yesterday, turned into a resetting of ideas. While not long term positive news, morning reports of Inflation...