Contracting Refined Fuels
Feb 16, 2022
As the old saying goes, “Hindsight is 20/20”.
Recently, many customers have been asking about contracting diesel in this volatile market. Historically, the energy markets soften in the winter months; and indications leading up to this point were favorable for a pullback in prices. Unfortunately, global inventories remain low, U.S. production is slow to recover, and OPEC+ is under-producing allocations.
Our advice to our customers:
Recently, many customers have been asking about contracting diesel in this volatile market. Historically, the energy markets soften in the winter months; and indications leading up to this point were favorable for a pullback in prices. Unfortunately, global inventories remain low, U.S. production is slow to recover, and OPEC+ is under-producing allocations.
Our advice to our customers:
- Stay informed. Review weekly energy updates.
- Understand your risk tolerance.
- Determine what price works for your business.
- Check your inventory and assess short-term needs.