What a Difference a Week Makes: From Optimism to Overreaction

What a difference a week makes!  Last week we were all feeling pretty good, wars were ending, pricing was falling, trade talks were on the horizon…..  This week’s complete 180 degree turn has caused diesel futures to jump over $.15 yesterday and this morning, on top of roughly $.05 added earlier in the week.  News broke that the scheduled Trump-Putin meeting was called off.  A sticking point appears to be the demand that Ukrainian President Zelensky is removed either by elections or mandate in order for Russin troops to pull back.    So, in our infinite wisdom, we immediately moved to the sanction/tariff tactic on those countries purchasing Russian crude.  India is the collateral damage, and the President said India will “cut way, way, back on Russian Crude purchases” .  That is 2 ‘ways’, so it sounds serious.   Ultimately this would force other supply options to raise pricing for the uptick in demand.  (recall the huge glut of floating product out there)  This appears to be  violent overreaction.  Furthermore, we have put the pause on deescalating a Trade War with China as back and forth shipping restrictions were introduced. We officially meet with China at the end of the month.  Hopefully we bring some Kit Kats (favorite) as Halloween treats and not Candy Corn.  Still life goes on and we should be looking ahead winter operations.  Keep in mind we carry a complete line of all your lubricant needs.  From Methanol, power service, to drummed kerosene, we got you covered.