Winter Weather and Policy Shifts in Focus

The strength of the futures market since the new year is somewhat perplexing. Many originally thought the ushering in of a new Administration would see pricing continue to push lower. While that hasn’t materialized just yet, much of the price action is still focused on the happenings in Washington. Recent Jobs reports continue to show a strong labor market, keeping the FED in check from making any bold moves on interest rates. Inventories are solid with still lackluster demand at home and abroad. The large storm that covered the midsection of the Country could have bolstered short term pricing, along with a week of below average temps in the Northeast. Potential tariff impact have taken over much of the media, something we mentioned several weeks ago and it will be interesting to see how the Don Quixote like charge on Greenland will affect prices, if at all. Like the Alaskan ANWAR region, which received no bids on leasing recently, guidelines and restrictions on the leases along with the thought of it only being a four year deal, makes it financially illogical to pursue. Once Congress gets back to real work and addresses the Renewable Fuels taxing and policies, we should start to see some relief on pricing. Being in just the early parts of January, it is always the best course to stay the course on your winterization of Diesel Fuel. We are always willing to talk on your specific needs. And please remember to keep those fills and access ways free of snow and ice, our drivers Thank You!