Has this ever happened to you? You are scouring your local market for diesel or gasoline product, can’t find any, and then end up needing to go somewhere else for product? A supply disruption is no fun for anyone involved.
Take a look at the inventory chart above. This depicts the national distillate supply situation going back to 2016. Since October 2022, distillate supplies have really begun to restore themselves. This has coincided with a drop in diesel prices as seen in the NYMEX chart below.
From the beginning of October until the end of 2022, diesel prices dropped over $1.50/gallon. Therefore, supply and demand factors have worked where supply inventories have increased, and prices have decreased. But what happens when that excess supply gets shut off due to a refinery issue, pipeline issue, etc.? With one supply disruption, sourcing product supply goes from being easy to extremely difficult very quickly. Limited product at the terminal can create long lines, resulting in the reduced number of loads you can haul each day and you being unable to supply your demand, leading to running behind, which in turn all results in heartburn.
What if you could smooth out that supply curve to keep your business on track during a supply disruption? Reach out to the Guttman team and allow us to show you how you can sleep at night knowing you have product to source in the morning. A market with excess supply can turn into a tight market very quickly, and we have the tools to help reduce your heartburn the next time it happens.
We’ll help you make a decision that’s just right for you. Call us for a free consultation. Offer only good in the continental U.S., not Alaska or Hawaii. Limited time only. While supplies last.