Where there's Smoke, there's Conflicting Market Indicators?
It appears that the Canadian Wildfires have spread a cloudy haze not just over the Northeast but also over the collective minds in the Fuel Markets. The last few days produced data that simply put, has baffled market sentiment. First to note, Diesel prices are roughly $2 LESS per gallon today versus a year ago. Thus, one would assume production and inventories to fall. This week’s Inventory report showed production is UP 2% and Inventories are UP 2.5%, yet future pricing is about $.20 HIGHER than a week ago. Again, usually higher stocks trigger lower production and falling prices.