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Market Close: April 26 Down, Diesel DN $.0781

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.

Have a Great Day,

Loren R Bailey, President

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Cell: 479-790-5581

 

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Categories: Fuel News
loren: Fuel Manager Services Inc. "Serving the trucking industry since 1992" I've been in and around the trucking industry for 45-years beginning in owner operator operations at Willis Shaw Express. I bought a small trucking company that I ran for 6-years then sold and went to work for J.B. Hunt Transport in 1982. After 10-years with Hunt, I started Fuel Manager Services, Inc., we are in our 29th year of serving the American trucking companies. Our simple goal was and is to bridge the gap between the trucking companies and the fuel suppliers.