What Just Happened? Interest Rates & Inflation Figures

It is very easy in this business to look back and think “what just happened?”  With a relatively calm news cycle the last two weeks, calm in the sense of more of the same, Diesel pricing soared almost $.30.  I guess we now know where the seasonal bottom was.  Gasoline has not been as volatile surprisingly, up a little over $.20 in the same period.  While two weeks ago, most were focused on demand, more recently it appears traders are focused on the bigger picture.  That landscape primarily consists of Interest rates and Inflation figures.  Several entities have opinioned rates will start to cut by mid-September has inflation data continues to cool.  This has provided the recent lift in all Oil futures the last two weeks.  But with demand still lagging, more in some areas than others, you will likely find shippers not willing to send excess barrels into the marketplace over the next few months regardless of price.  Those extra gallons, “rack” gallons by industry lingo, will more than likely dry up.  Having a Supplier with guaranteed inventory deals would be wise for Q3 & Q4.   The two week spike appears to be somewhat overdone and we will likely settle a little lower before the hurricane season is in full swing.  This can and will cause sudden jumps in pricing if paths line up to the Gulf Coast.  We are always willing to talk so you’re not saying “what just happened?” 

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