Weekly Insights - May 25, 2018

Good afternoon. Another beautiful day in SD. Dry fertilizer application is winding down only to be replaced by spraying season. The next 4-5 days are supposed to be unseasonably warm with the potential for some spring storms…and maybe a little rain?

On to the energy markets. Another interesting week. The markets have had an up and down week with not a lot of new news to be a driver. The inventories were a little bit of a surprise. WTI crude and gas were up as well as propane but diesel was off a little bit. The markets are reacting somewhat to that news, but most of the action seems to be based on the fact that President Trump has cancelled the meeting with North Korea. Also at the oil summit, it appears that Russia and Saudi Arabia are in agreement as to what should be done. Russia commented $80 crude is high enough and it is time to increase production. If Saudi Arabia agrees, and it sounds like they will, more crude could be dumped into the world market hopefully halting the steady increase of gas and diesel.

One other newsworthy item: China again told their state run refiners and grain purchasers to buy more U.S. oil and soy to help ease tensions and fear of a trade war.
The consensus from my marketers now seems to be that the markets are slowing the upward run to assess Venezuela, Iran, and the oil summit in St Petersburg. The markets are off Thursday. Will this continue?

I would not suggest filling tanks right now. In the meantime, if you are in need of some diesel to get through spring, give FCA a call.
Have a great Memorial Day weekend and THANKS FOR YOUR BUSINESS.
Have a safe and productive week.
 Transport Price Ruby Fieldmaster 7500 gal minimum

Britton Area $2.5561**
Aberdeen/Groton Area $2.5320**
Doland Area $2.5561**
Forman/Gwinner Area $2.5553**

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