Market Volatility Continues as Driving Season Kicks Off
As expected, pricing has remained range bound the past week as we try to digest the often mixed data and the volatile news cycle. Thankfully, I have a constant supply of TUMS within arm’s reach. Pushing prices higher recently are the drop in finished products for gas and distillates as gasoline is about 2% lower than last year and distillates relatively flat. Additionally, on a global scale, fires in Canada look to be shutting in about 250,000 b/p/d and reports are that Russia will enact another cut of 300,000 b/p/d in the coming weeks. That is being offset by a lingering fear of another banking crisis should a debt limit deal not be reached and more importantly a pending credit crunch as rates remain elevated. Domestic demand for both gas and diesel is down about 2% versus last year and while Chinese demand is robust, most say it is well below where it needs to be after a total lockdown.