Truck Capacity Nightmare

By: Mike Dombroski / January 5, 2018

Despite the forecast for temperatures to return to normal for this time of year next week, these are certainly historic times.

A lot of people have been asking this week if this weather has caused industry conditions to be worse than the 2014 “polar vortex.” Yesterday was certainly historic on the natural gas side. Transco Zone 6 NY, a large natural gas cash market, traded at $175/dekatherm. This cash market exceeded its previous high of $125/dekatherm which was traded in January 2014, during the infamous “polar vortex.” Dual-powered power plants that normally operate on natural gas have been switching over to diesel because immediate natural gas supply is so tight. Utilities are commanding all transport truck capacity in order to bring diesel loads so they can operate because they are able to sell at extremely high prices. This has turned the petroleum hauling industry upside down and is putting some haulers four days behind on deliveries. Therefore, we are asking our delivered-in customers to schedule loads ahead of time with us for all of next week so we can best accommodate your fuel needs.

 

icy tractor trailer

 

Please contact your sales representative here as soon as possible to schedule these loads because, yes, in many respects, this is worse than the “polar vortex.”

February WTI currently trades lower by $0.56 to $61.45/bbl, ULSD is lower by $0.013 to $2.064/gallon, and gasoline is down by $0.0168 to $1.7899/gallon.

1-4-18 market

 

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Mike Dombroski

Written by

Mike Dombroski


Guttman Energy Daily Market Update Disclaimer – The information contained in this market update is derived from sources believed to be reliable; however this update could include technical inaccuracies or typographical errors and Guttman Energy does not guarantee the accuracy, completeness or reliability of this update. FURTHERMORE, THIS UPDATE IS PROVIDED "AS IS," WHERE IS, WITH ALL FAULTS AND WITHOUT ANY WARRANTY OR CONDITION OF ANY KIND, EXPRESS, IMPLIED OR STATUTORY. GUTTMAN ENERGY ALSO SPECIFICALLY DISCLAIMS ALL EXPRESS AND IMPLIED WARRANTIES. YOU USE THIS UPDATE AT YOUR SOLE RISK. This update and any view or comment expressed herein are provided for informational purposes only and should not be interpreted in any way as recommendation or inducement to buy or sell products, commodity futures or options contracts.


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