As fireworks go sky-high this weekend so do fuel prices

Americans are seeing the highest increase in gasoline prices since 2014. The price of gas has increased almost a dollar since last year. The national average price per gallon of regular gas is $3.12 a gallon as of last Thursday. Analysts say it is expected that in July and August hundreds of thousands of barrels of more fuel will be burned compared to prior levels, sending the national average price of gasoline upward towards $3.20 or higher.fuel prices

Read More

Colonial Pipeline Update

On May 7th, the Colonial Pipeline was paralyzed with a ransomware attack halting 45% of the East Coast fuel deliveries. With the Colonial Pipeline shut down, consumers began panic buying which had a major impact on the readily available supply of fuel. Read More

Market Meltdown

Unless you’re a bear hibernating, everyone knows the Coronavirus is causing panic and particularly panic in the markets. Speaking of bears, we are now possibly entering a bear market.

Read More

Will Pennsylvania Raise Gas Taxes Again?

In an effort to reduce greenhouse gas emissions from transportation, 12 Northeastern states and Washington D.C., including Pennsylvania, are weighing a regional program that would raise the price of gasoline.  The Transportation and Climate Initiative (TCI) defines their program as a “bipartisan group or Northeast and Mid-Atlantic Jurisdictions” looking to “achieve additional benefits through reduced emissions, cleaner transportation, healthier communities, and more resilient infrastructure.”  According to CBS Pittsburgh, their recent plan would require wholesalers of gasoline and diesel in participating states to buy carbon credits to sell their fuel.  Critics of the program are quick to point out that the costs of these credits will be passed on directly to the consumer.

Read More

Light Liquidity

As the end of this week winds down and people prepare for the holidays next week, light liquidity will most likely be the name of the game in our energy markets. Light liquidity means trading volume is lower than normal which is to be expected during this time of year. Therefore, the bid/ask spreads are wider. Meaning that if the computer-driven trading houses decide to either buy or sell a lot of volume, the market can move violently in one direction rather quickly. What does this mean for our industry? This means that our customers can be very opportunistic especially if we see a retracement in prices after this rally we’ve seen since the beginning of December.

Read More

The Cost to Consumers

The events over the weekend in Saudi Arabia are causing concerns throughout the nation.  The oil installations attacked resulted in the removal of six percent of daily world consumption, which will have an impact on motorists and consumers in the United States as early as today.  The attack on Saudi Aramco’s Abqaiq plant in Buqyaq and the Khurais oil field is the biggest disruption to Saudi Arabia’s oil industry since the early 1990’s.  The pain consumers may feel center around how long it takes normal output from the world’s second-largest oil producer to return.

Read More

Early Morning Explosion

Early Friday morning, a massive explosion occurred in south Philadelphia at the Philadelphia Energy Solutions Refining Complex. The 150-year-old oil refinery, opened in 1866 just after the Civil War, had a vat of butane ignite and explode causing Interstates 76 and 95 to close and even “rattled” homes in the South Jersey area.

Read More