Volatility in the Energy Market
Article provided by: Rick Limon, director of fuel sales
The hot word for 2022 was VOLATILITY! That volatility was present in virtually every part of our lives. The energy markets and diesel fuels were certainly impacted. As you can see in the chart below with the gold line being 2022, prices were anywhere from the $2.75 range clear up to $5.00. An interesting point to note is that despite the extremes in the peaks and valleys, the seasonality of the peaks and valleys stayed the same. The low, flat and high points on any given year all stay the same despite what the dollar figure might be. That is worth noting in that the traditional period from December through February where the best fixed forward contract pricing is at its lowest, still exists.
The number of factors that impact the energy market from day to day are many and worldwide, thus it makes it very difficult for even the most informed to truly know when the bottom/lowest price will be. None of us may know when the absolute best time is to contract but we do have indicators of when a “good time” is to contract.
If you have not completed your fuel contracting for 2023, please take a moment to look over this chart, read through the info shared in the link and visit with your MKC Energy Consultant and see if together we can find a fuel contract that can benefit you and your operation this year.