Contracting Refined Fuels

Feb 16, 2022

Contracting Refined Fuels
As the old saying goes, “Hindsight is 20/20”.  
Recently, many customers have been asking about contracting diesel in this volatile market. Historically, the energy markets soften in the winter months; and indications leading up to this point were favorable for a pullback in prices. Unfortunately, global inventories remain low, U.S. production is slow to recover, and OPEC+ is under-producing allocations.
Our advice to our customers:
  • Stay informed. Review weekly energy updates.
  • Understand your risk tolerance.
  • Determine what price works for your business.
  • Check your inventory and assess short-term needs.
Analysts are still saying production will increase throughout 2022. Everyone’s situation is different. Understanding the above items will help make the best decision for your business. At River Valley, we are here to help navigate these difficult times. Please call your Energy Account Manager to determine what is right for you.

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