Weekly Fuel Market Update (WFMU) | April 1st, 2014
Diesel fuel is traded on the NYMEX as Heating Oil – a product that provides heat to much of the nation throughout the winter. With demand for Heating Oil down as we move into the Spring we usually see a drop in diesel prices. The recent crisis with Russia and the Ukraine as well as the struggling China economy have kept prices higher much longer this winter.
Local refiners have flooded the market over the last few weeks. We expect diesel and gas to tighten as some local refiners go into turnaround in the coming months.
Some West Texas Refineries have experienced periods of shutdown or slowdown – from both planned and unplanned maintenance issues. During these times, refineries usually limit supply to wholesalers and customers that have the larger contracts.
Desert Fuels is positioned throughout West Texas to always have fuel and always at the most competitive prices no matter what the market is doing and even when supply is tight.
Phoenix and Tucson terminals benefit from supply coming from the West Coast as well as the Gulf. Local refiners will bottom the market when they have good supply. The key is to have multiple options for supply from both the locals and fuel that is shipped in.
Desert Fuels has secured additional supply in Arizona allowing us to be more consistent with our prices in the Phoenix and Tucson markets. Be sure to look at our daily pricing and call us at 888-750-FUEL(3835) if you need product.
Colorado – Front Range
No significant update to report this week in Colorado.
Call your Dedicated Customer Account Manager, today for the latest updates on the market in all of these regions. As always, you can reach us 24/7/365 at (888) 750-FUEL (3835).