Volatility continues to have a hold on the diesel market. In the past week alone, we have dropped over $.30 and subsequently rose $.30 in just four sessions.
There is always a hurricane premium laid into the market once storms reach the gulf. Reality is that less than 10% of the Gulf Region Production was pulled offline in the last few days and most are back online at this point. However, as the storm moves on, your will see a rolling port closure effect as it moves up the close which likely will cause regional increases in the next day or so.
Inventories showed draws across the board this week with much of the same import- export spreads while some real focus was put on demand figures being stronger. For diesel much of the increase can be attributed to the fall harvest that typically happens this time of year throughout the country. Still, it gave traders a reason to buy over the last wo days.
Concerning news on several “leaks” on the NORAD Stream gas pipeline that feeds much of Europe from Russia, as the issue now appears to deliberate in nature. This could force shipments of US product overseas for the foreseeable future and keep prices elevated.
Other bullish tidbits came in the way of Senator Manchin pulling his Fastrack Energy Permit Plan in order to prevent a Government Shutdown. This was seen as a bright light to many in the Industry a few weeks ago. Two up days doesn’t necessarily break the trend, but its hard to comprehend when they erase the losses we all were so happy to see.