Breakthrough®Fuel’s Applied Knowledge team is crunching the numbers, finalizing research, and wrapping up the next installment of the Breakthrough®Advisor publication.
Clients should keep an eye on their email inboxes for important updates to help guide supply chain strategy. Here’s a look at what’s coming your way in the July 2017 edition.
The End of Range-Bound Behavior?
The diesel fuel market has yet to indicate a clear upward or downward direction for 2017. Prices stayed within the same relative range for most of the first half of the year. Even as OPEC implemented cuts, specific members, such as Nigeria and Libya, are now increasing oil production.
U.S. oil production continues to show steady growth. As an example, the number of oil rigs deployed in the U.S. is up 122% from just one year ago.
So far this year, OPEC cuts and U.S. production balanced supply and demand for oil. Could that be changing?
Breakthrough®Fuel’s Applied Knowledge team will let you know if there’s more range-bound behavior in the future, or if a trend in a certain direction is emerging.
Outliers in Regional Refinery Utilization
Major U.S. refinery markets in the Midwest and Gulf Coast are experiencing abnormally high utilization rates this year. There have been very few disruptive issues to cause any spikes in refined products prices.
However, that’s not the case in every region of the country. We’ll take a closer look at where utilization rates are noticeably lower, and explain the impact it is having on diesel prices.
Fuel Tax Adjustments
Twice a year, the Applied Knowledge team reports on diesel tax rate adjustments at the state level. Our mid-year examination reveals that multiple states are implementing tax hikes.
We’ll tell you which states are making changes and how much of an impact it could have on transportation budgets. This special report in the upcoming Breakthrough®Advisor will help you make informed decisions to maximize supply chain efficiency.
A Breakthrough®Fuel Fuel Recovery program takes state tax adjustments into consideration when determining a fair fuel reimbursement, helping our clients manage energy costs and pay a price for diesel based on actuals not averages. You won’t get that sort of accuracy when relying on the DOE Index.
Want even more industry insights from Breakthrough®Fuel? Our full Advisor publication is exclusive to clients. However, we gladly offer access to a recent sample version of this valuable content. Use the form at the bottom of this page to read an Advisor Brief and visit our Knowledge Center for more.