Why all the heartburn? Are you struggling to get the fuel you need? Are your fuel deliveries late because you’re not under contract? Don’t let Low Fuel Inventory keep you up at night.
Let’s describe why the fuel market is tight:
- U.S. refinery utilization has averaged 91.2%
- Refinery production is essentially maxed out domestically
- Distillate supplies in October 2022 are over 32 million barrels under-supplied in comparison to normal
- This is the most under-supplied the distillate market has been since 2008
- Exports continue to be above average
- Refineries are near full capacity
- Geopolitical supply disruption concerns continue to persist with the war in Ukraine and potential China/U.S. hostilities over the independence of Taiwan
At current low inventory levels, any substantial up-tick in demand will magnify the prompt upward price movement quickly. As we sit here in the first few days of November, still trying to get the taste of Halloween treats out of our collective mouths, the National Oceanic and Atmospheric Administration (NOAA) forecast looks mild for the near term, if/when the weather snaps to frigid temperatures, demand will rise and so will prices.
Here at Guttman Energy, our Fuels Team has put customers in a position to be able to sleep at night. Don’t hesitate to reach out to us to discuss what we can do to help you relieve that heartburn.