Weekly Insights - August 31, 2018

Good afternoon to all. Let’s talk weather and fuel. I received an email today from one of my marketers about hurricanes. Even though it has been a quiet season thus far, the normal peak hurricane season does not start for 10 days. There is a low-pressure system off the coast of Africa that has an 80% chance of developing into a storm, according to the National Hurricane Center. How does this have any effect on my fuel and gas?  Where do most hurricanes end up? The Gulf Coast. What is in the Gulf? Approximately 50% of US refining capacity. We all know from past experience what happens when a storm tears through oil country. At this point in time, diesel is at the bottom of the five year inventory supply.

The price of diesel has been on a pretty steady uptick for most of the month. Does the above story have any affect on prices? Inventory does. Storms? Not so much…yet. The market drivers this week were the “surprise” draws in inventory, decreasing value of the dollar, and the continued decrease in Venezuelan exports. Markets are up approximately $0.10 since the beginning of the month. Every day is one day closer to harvest and not normally a downtime for the fuel markets. I would suggest laying in at least a portion of your needs if you have not yet.
 
 Have a good week and thanks for your patronage.

 
 Brian Beck
 
Transport Price Ruby Fieldmaster 7500 gal minimum

Britton Area $2.5334**
Aberdeen/Groton Area $2.5093**
Doland Area $2.5334**
Forman/Gwinner Area $2.5276**

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

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