Weekly Fuel Market Update (WFMU) | September 3rd, 2014
The Farmer’s Almanac is predicting another brutally cold winter for the Midwest and Northeast and below normal temperatures for most of the United States this winter. The National Weather Service is also predicting a wetter than normal year for the Southwest with an “El Nino” weather pattern in the Pacific Ocean. Cold weather is one of the causes of higher demand and production disruptions – resulting in higher fuel prices.
The Southwest has seen very little production disruptions over the last few months which means supply is plentiful. Local refiners are producing and competing for low prices. Making the decision to buy at the right time is critically important if you want to save money on loads – especially when there are large swings in the futures market as we have seen in the last few days.
More same day deliveries now in Midland/Odessa as lines ease up at the Odessa Magellan Terminal. In El Paso, local refiners continue to bottom the market.
No significant change in this region.
Colorado – Front Range
Winter preparations are already underway in Colorado. Supply tightness is loosening up in Denver and Colorado Springs.
Questions? We’re here to answer any market questions you may have. As always, you can reach us 24/7/365 at (888) 750-FUEL (3835)