Add diesel fuel supplies to market anxieties over shortages and high prices. Diesel hit all-time record prices this week. Both gasoline and diesel rose sharply after Russia’s invasion of Ukraine, but in the last two weeks, diesel prices spiked again. And the medium-term outlook remains bullish.
The above prices are in the Midwest, but the problem is more acute on the East Coast. While the Russia/Ukraine war is an adverse catalyst, it is not the driving underlying force for the current diesel situation. The issue is inventories and refining capacity on the East Coast. Since January 2022, inventories of distillate on the East Coast are down 47 percent. In the past two years, refining capacity has dropped to 818,000 barrels per day, d...
What You Need to Know Today: The hot, dry weather forecast continues to drive strength in grain futures with corn and soybeans hitting another day of strong gains. Monday’s Crop Progress and Conditions data were in line with market expectations and showed relatively few concerns for the...
Yesterday we wrote about the Q1 GDP numbers and the June employment reports in an article entitled Real GDP for Q1 Relying on AI Buildout, Held Back by Consumer Spending. That article mentioned that consumer spending had become a drag on GDP. Nonetheless, real GDP in Q1 was revised upward to 2...
Key Takeaways: The Middle East and North Africa's arid climate and limited water resources have created a structural dependence on imported wheat. Government wheat tenders in major importing countries serve as important benchmarks for global trade, providing insight into exporter competitivene...
