I hope everyone has a safe and enjoyable Thanksgiving! Good news yesterday, as the Teamsters and CN agreed to a tentative deal and workers returned to work last night. We are not out of the woods yet, but now we have a target and some light at the end of the tunnel. We expect supply to be tight for the next few weeks as rail shipments get caught up. But with allocations resetting in December we feel that the potential for a December disaster is starting to subside.
Crude prices rallied this week with hopes of a China/US trade deal. In addition, OPEC+ is talking it up that supply cuts will continue. I believe that the rally is a little premature. I’m not too concerned with crude prices breaking out much higher.
Retail prices of gasoline and diesel will continue to rise as costs increased this week. We believe that once again this might subside after Thanksgiving.
As always, if you you have any questions, comments, or concerns, please feel free to give us a call.