The long term fuel price trend continues to head lower with diesel pricing being almost $.20 lower than a week ago. There is something in the orange that tells me we are not done.
Recall, we don’t hit new highs and we touch new lows. Inventories showed moderate increases for both gasoline and diesel, with demand showing its first increase in weeks. Some demand uptick can be attributed to the start of the heating season. That also means the start of winterized diesel fuel. Not all diesel is the same and it is important to understand the language around winterization to keep your fleet running smoothly. There are three key terms in talking winter diesel. Cloud point, CFPP, and pour point. Cloud Point is the most stringent and conservative temperature at which fuel will initially start to freeze by showing a haze or “cloud” of the wax crystals starting to drop out of the fuel. Standard diesel has a cloud point of +15 degrees F. CFPP or (Cold Filter Plugging Point) is the temperature at which the diesel will stop passing through a standard filter. Additives, which have gained effectiveness over the years, can change the molecular structure of the wax molecules to prevent them from sticking together and allow them to pass through filters. This temperature is usually significantly lower than a cloud point. Pour Point, is the temperature when diesel loses its ability to flow. At this point you aren’t moving. This temp is often much lower than the CFPP. So its important to know that if someone says the fuel is a -22F diesel, asking if that is Cloud, CFFP or Pour Point is important. Securing Q2 pricing has gained some momentum with this recent dip, we are always willing to discuss your specific needs. Schedule a Meeting