Market Close: April 26 Down, Diesel DN $.0781
Apr 26th, 2023 by loren
Fueling Strategy: Due to prices UP 4.5 cents, Please “partial fill only” today/tonight, Thursday prices will drop 8 cents~Be Safe
NMEX Crude $ 74.30 DN $2.7700
NYMEX ULSD $2.3730 DN $0.0781
NYMEX Gas $2.5494 DN $0.0392
NEWS
The key industrial fuel, which is used to power machines as well as trucks, began to dip during a warmer-than-expected winter, and the slowdown has been exacerbated by diminishing factory output and weaker demand for on-hire trucks, according to the Wall Street Journal.
Wholesale diesel prices in New York Harbor tumbled to $2.65 a gallon from $5.34 The Conference Board’s Leading Economic Index declined further in March, suggesting that a recession will hit in the middle of this year. At the same time, the most recent reading on the New York Fed’s Recession Probabilities Model puts the odds of a downturn at 57.7%, the highest mark since 1982.
Last May, per the Journal. Benchmark diesel futures, meanwhile, have plunged nearly 25% in 2023 to $2.53 a gallon, and domestic demand is down 8.4% since the same time last year. Meanwhile, recent indicators show a steep declines in freight. The American Trucking Association’s for-hire contract truck tonnage index dropped to 95.8 in March from 101.3 the month prior, hitting the lowest level since August 2021.
And in an earnings call last week, JB Hunt executives sounded the alarm on a “freight recession” as the shipping company missed earnings views and reported across-the-board drops in volumes that sent revenue per truckload down by 17%. Executives had previously forecasted a rebound in industrial activity by the second half of 2023, but in the call, they said a recovery looks less certain due to the broader economic slowdown. “It’s just a question of when and what position will we be in when our customers start ringing our phone again in ways that they have in the past,” JB Hunt CEO John Roberts said.
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