Brent crude fell more than $2 to around $123 a barrel on Tuesday, after Kuwait said Iran reassured the Gulf state it would not attempt to close the strategically important Strait of Hormuz shipping lane and Saudi Arabia signaled it was ready to increase supply. This is positive news if you are hoping diesel fuel prices stay at or go lower.
A return to pre-war exports from Libya also eased pressure on the market, while a slowdown in Chinese demand and a stronger U.S. dollar also weighed. Again, all good signs that maybe diesel fuel prices and gas prices won’t go to crazy.
Sheikh Sabah al-Ahmad al-Sabah, the ruler of Kuwait, said Iran officials had assured his country that Tehran would not close the Strait of Hormuz.
Saudi Arabia, which has said it stands ready to fill in for any gap created by the loss of Iranian oil, late on Monday said it would work to return oil prices to fair levels, according to a state news agency. The catch to that statement is always what every one believes is fair. It is like saying you are buying diesel fuel off of rack pricing. What is rack?
What we do know is if we have builds this week in U.S. inventory we should start to see gas prices and diesel fuel prices give back to the public. Almost like a fuel savings but not really. The way we see it the less times you need to pull your fuel card out at the gas station or truck stop the more fuel savings you have.