Weekly Fuel Market Update (WFMU) | November 10th, 2015
Fuel futures ended down last week with no bottom in sight. This is thought to be temporary as the Secretary-General of OPEC, Abdalla Salem el-Badri, said the market should be balanced through next year as global demand continues to grow at a steady pace. As of today the market has been fairly flat.
Due to unplanned refinery issues, product has been a bit tighter around the state. There is no outage at the moment and the tightness is expected to loosen up by the end of the week. Prices are generally following the NYMEX trend.
Supply in Lubbock has produced a good price throughout Lubbock, Odessa and Amarillo. Unexpected outages in El Paso have created an extreme tightness in the area and have resulted in higher prices. This tightness is expected to loosen up mid-week, but for right now allocation is extremely limited.
The region is in an extreme dry spell of diesel at the moment. This is thought to be caused by the outages in Las Vegas which pulled fuel from Phoenix along with refinery issues in California. This “perfect storm” of problems has produced a scenario where diesel is scarce. Again, help should be on the way by the end of the week as suppliers believe this is when they will have allocation once again.
Questions? I’m here to answer any market questions you may have. As always, you can reach me 24/7/365 at (888) 750-FUEL (3835)