Champaign, Ill. (RFD News) — While many producers have enough fuel on hand for the summer, attention is beginning to shift toward diesel supplies for the fall.
Dave Chatterton with Strategic Farm Marketing said diesel costs could remain elevated as inventories recover.
“I think what we can expect here in the U.S. is that diesel fuel exports are probably going to stay pretty elevated here for a little bit of time and continue to kind of keep us in a tight inventory situation. Diesel fuel, I think, will be the last of the refined fuels to get back to a comfort level, if you will.”
GasBuddy’s Patrick De Haan said global oil inventories have fallen sharply since the conflict involving Iran began, and rebuilding supplies will take time.
“While prices are declining, global oil inventories have been declining at near record pace. It probably will take 6 to 12 months to get those global oil inventories back to pre-war levels. While prices are declining, they were made elevated. The national average still up 76 cents a gallon from last year.”
De Haan added that hurricane season could further slow the recovery as well.
Analysts say producers should consider locking in fuel prices sooner rather than later as markets continue to adjust.
