Fuel Price Index [04.20.2018]Oil continues its rally towards $70 per barrel, despite all the warnings that higher prices will just lead towards more shale production in the U.S. The protagonists in the fight to lower the global glut seem to be reaping the rewards, but keeping prices high via an extension of production cuts beyond the ridding of the glut will be what will be most interesting to watch over the next few weeks and months.
Hedging for next winter seems to be in full stride as some dealers – perhaps needlessly – as showing some signs of early-Spring panic. Sure it pays to scale-in, if that makes sense for you, but this winter isn’t even fully over yet, so a little early to see those signs of stress.
Jim Slattery, President