Weekly Insights - August 13, 2018

Good morning to all. It appears that that the wet weather has temporarily left us only to be replaced by an orange sun and a haze in the sky. I assume everybody is aware of the wildfires out in California and that is where this is coming from. Being a firefighter myself, that issue is of great interest to me. How this will affect our weather remains to be seen.

Tariffs. This seems to be the buzzword this week. Actually, it is not a buzzword, it is a reality that is affecting foreign trade. China and the US are the biggest players. In retaliation to US tariffs, China placed a 25% duty on US crude. Even though inventory numbers and the news of sanctions on Iran should have put a bullish spin on the energy markets, the tariff news had the opposite effect. Wednesday the market had a drastic drop and a slight downside again Thursday. Unfortunately, Friday’s market is reclaiming some of the losses. Some marketers may say that the market has a “bearish” feel to it. The market is not bearish until there is a downside of a week or better which gives me the opportunity to pass on some savings to you the customer. With only one down day every 7-10 days, it is impossible to react and move enough product to provide much advantage to the customer.  Even with the daily issues in the energy world, FCA strives to offer the best products at the best prices.

In the LP world, FCA is still doing summerfills and LP system updates. As of my last market report, LP is on a gradual climb and hanging pretty tight with crude. My recommendation if you have not, is contract at least part of your needs for the upcoming heating and potential drying season.
Have a good week and thanks for your patronage.
Transport Price Ruby Fieldmaster 7500 gal minimum

Britton Area $2.3928**
Aberdeen/Groton Area $2.3687**
Doland Area $2.3928**
Forman/Gwinner Area $2.3920**

**Please call for exact pricing as prices are subject to change at anytime without notice.

Our Mission/Vision Statement:  To be our customer’s first choice for industry-leading resources and knowledge.