Cruising Through Choppy Waters: Market Swings & Red Sea Tensions
Futures markets continue to trade in wide daily ranges as it digests both inventory and demand data along with monitoring the ongoing “crisis” in the red sea area. While diesel futures are up over $.20 from the beginning of the month, it appears it could have been a lot worse without taking into account the overall lack of demand. Both gasoline and diesel inventories are up over last year, +9% on gas and +18% on distillates, the demand figures are what we are watching closely. Both products are down roughly 3% versus last year, while it doesn’t seem like a large number, in the overall picture it is enough to keep markets in check from skyrocketing higher. Again, diesel demand is often looked at a measuring stick of the overall health of the economy. Clashes in the Red Sea shipping lanes appear to be lessening, but still ongoing, keeping many on edge. It looks like the markets react overnight with news of new attacks, then subside as the day goes on.