US Opts for "Tanker for Tanker" Policy

 Another week, another $.50 added to distillate pricing. With not a whole heck of a lot left to target within Iran itself, the US has now opted for a “Tanker for Tanker” policy. After two Saudi tankers were hit by drones on Monday, two Iranian docked vessels were struck Tuesday by US forces. A somewhat controversial policy, as typically commercial ships have been off limits to US attacks and may trigger other nations to take a more active role in the region. (i.e. China who depends on Iranian oil now and in the future) With an average of 12 tankers a day navigating the strait, 60 per day was the pre war norm, it will take a long time to balance out world supply routes when a deal is finally made. Much is being made about US reserves again, recall that the Gov’t is also a market participant and they want to buy (fill) the SPR when low and sell(release) when high. With demand down 10% over last year and exports robust, don’t expect to see those reserves get bigger anytime soon. We have hit the point in time that many believed a deal need to be done by, having a trusted supplier with dedicated inventory, for fuel and lubricants, will be vital as we move past labor day.