Before hitting on oil, let’s give the Earth its props today. It is Earth Day after all. The day really doesn’t get a ton of attention. Maybe if we made it a holiday that would help. Heck, the USPS would have the day off which would help them save money on their fuel budget.
Global Warming is real, we are all part of the problem, and we must all be part of the solution. The average American is responsible for a whopping 24 tons of CO2 a year. How do we create that much carbon? Let’s take a look planes, trains, cars, lights and pretty much anything that uses power and energy. So what can you do conserve, recycle, be mindful. If we all do our own little part things will get better. Not overnight but it took us more than overnight to get here. As firm believers to a better place Sokolis wants you to do your part and help.
What’s Up With Oil!!
U.S. fuel demand has now drifted down to its lowest level since May 14, 1999 and there are concerns that a bottom may be weeks if not months away. Thanks mostly to the descent of on-road diesel fuel usage and jet fuel, the U.S. total fuel demand number hit 18.16 million b/d last week. One has to go back 119 months to find a lower number, and now that heating oil season is over the 10-year low could soon be threatened. If this is market economic 101. Supply and Demand. We just have a lot of supply and not a lot of users of petroleum. At least not as many users as we had when the economy was rolling along a year or so ago.
Gas stocks rose by 802,000 bbl to 217.3-million bbl despite a fairly robust demand increase of 192,000 b/d to 9.136-million b/d. Imports continued to stream into the U.S., with arrivals of gas and gas blendstock at 1.117-million b/d. Distillate stocks rose by 2.68-million bbl to 142.3-million bbl, and the build occurred largely because demand was a thoroughly miserable 3.452-million b/d.
We still believe the fuel market is going into the mid 40’s for a barrel of crude in the short term. Are we projecting a strech with that number, who knows. At Sokolis we believe if you have a solid fuel management program in place which is making sure you have good fuel deals, fuel discounts, a hedging program if that works for your company, you are better prepared then most of the companies out there.
Go outside and enjoy some SUN. Remember to put sunscreen on because we have already burnt off part of the Earth’s atmosphere.
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