Can I just say how sensible this is. There will be people really caught out I fear.
This is a series of tweets relating to what's happening in the US but you will get the point and it's relevance.
Casey B Head AT CaseyBHead
It is going to be a hard winter. Heating oil is $5.699 right now. I normally do a pre buy of 500 gallons in August to lock in the price before winter demand hits. First they told me to check back in September, and then called me just now to say no pre buys because of the market.
Peter B AT realpeteyb123
I have a lot of friends in the heating oil business, and they’re telling me it’s absolute chaos right now.
I was also talking to a friend who owns a trucking company with a large fleet of diesel trucks. He told me their fuel costs are changing so quickly that it’s becoming incredibly difficult to price jobs and plan ahead.
You gotta know the streets, listen to the man, find out what’s happening.
Pain is coming
(When challenged about his use of language, Peter B replied: The streets and the man is an old Wall Street metaphore for seeing and understanding sentiment and what’s coming… I used to be a stockbroker.)
The Flippin Floridan AT Brainlinker
Asked my trucker friend.
As an independent contractor he pays for fuel himself. Went from paying $1200 a week to $2000 a week for fuel. His margins slashed.
Said a medium sized trucking biz just closed down.
Says drivers will stop driving cause it doesn’t make $$. Fuel surcharge fees that are meant to be a buffer for them do not make up for the bump in diesel.
Pain.
Chivalrous Shark AT JNKerr13
My brother in law runs a concrete plant. They have to update their fuel delivery surcharges weekly now. The last time I remember everyone screaming about fuel was 2007-2008. I don’t think it will be that bad but you never know. If a going to put a clamp on things. Look at how many diesel pusher luxury RVs are in the market right now! Pain is definitely coming!
N2 Rotation AT BlisteredSkies
Agreed. I purchased several hundreds of thousands of dollars in Jet fuel each year for my principal.
Trump was dishonest about the Venezuelan oil filling the SPR.
1. It’s very heavy crude. To make it even remotely usable you have to dilute it, blend it, Coke it, and upgrade it to refine to a level remotely usable. This is a capital intensive process.
2. He had already met with the heads of Chevron and Exxon. They refused to put capex into a country that could nationalize again and take their investment.
3. We tried this in the 80s and it nearly ruined our supply to blend it with our light sweet crude.
Couple these issues with the fact that the Strait of Hormuz , presents problems, they just bombed pipelines in Saudi Arabia, causing supply shock, and of course, the ongoing Russian and Ukrainian war.
Diesel and jet fuel are skyrocketing right now. Most places I go are 8 to $10 per gallon of Jet A.
Lucy AT LucciaorLucy
Just had a conversation with a farmer who uses heating oil. He said as of today’s prices, his costs for heating will be 3-4K higher than last year here in Michigan. Let’s not get into the diesel costs for his farm.
SkIdMaRk AT SFCSkIdMaRk
I live in upstate NY. Tons of homes are oil furnace. It’s been bad for awhile. It’s true what ya said. It’s about to get worst. What sucks is that this is a state problem. Even propane is high. Really hoping Blakeman gets in as Governor.
Peter Jones AT PeteyJ93
I am in the construction field and know of 3 companies that already parked their trucks due to diesel prices. Oct 1st there is supposed to be a trucking strike
Now I don't often post threads from complete randoms as it's hard to gauge how accurate/ genuine people are on them. However this thread is one I do think is real and says a lot that is almost certainly going to be happening in the UK and EU too (France already has fishermen striking at oil refinery).
There are a number of posts which blame Ukraine too which is interesting. But I'm more interested in the practical real world impacts at this point.