It’s hard to stay in the Holiday Spirit with 5 out of the last 6 days being up days. We now sit about $.20 higher than a week ago. But if you believe in the trend that we have been in for the last four months, there won't be a lump of coal in your stocking in another week. Rather, it would suggest that we will reach a new low.
The recent rise can be solely attributed to the Houthis activity in the Red Sea. A Yemen backed group that has been attacking both cargo and fuel ships in an area where about 10% of the world goods pass through. This has lead to most majors “temporarily halting or rerouting” vessels away from the area. Yesterdays gains were reversed with the Inventory report showing an increase in Distillate stocks and demand still about 5% less than last year. Adding to that was the trucking index report, resuming its downward trend after a one month pause in October. Don’t Ba Humbug yourself if you think you missed the chance to secure Q1 or Q2 gallons, have a number in mind what works best for yourself now, and when it approaches, execute. Again, the long term trend still appears lower. Stay in close contact with your Rep as the market moves quickly. As we head into the last week of the year, from all of us here at Dennis K. Burke, Inc. we first say THANK YOU and wish you and your families a Safe and Happy Holiday Season!