Folks, I hate to be the bearer of bad news but it is what it is.
The Belvieu to Hattiesburg differential is blowing out. Someone just paid +$.1650 over for Hattiesburg’s/
We are forced to move our prices up nearer to where we know we can buy barrels, which is a base cost of $1.3800 in Hattiesburg. My guess is you will see postings less than that tonight and for the weekend, but as I have been saying all week long, if you know you have spot load needs for the next week or so, you should STRONGLY consider locking those prices in now. I understand some of you are not comfortable going out too much farther than a week, and you are certainly entitled to your own strategy there and at times that has served you well. If you have the ability to raise your prices along with the sport market and not lose market share, then more power to you.
However, I do recommend looking to cover next week’s known spot needs now with locking in a loads deal with us or one of your other supplies who allows you to do that, because things are out of control in the Hattiesburg market right now. It’s already a thinly traded market to begin with and when a few companies start buying barrels like we’ve seen the last two days, things get crazy.
Again, even if it’s not from me, I strongly suggest you lock some loads in for next week with someone if you know you will need them. I appreciate the opportunity to serve you. Here are our prices this ten seconds…as crazy as things are, please call me to confirm a number. The current market is over $.10 cents higher today than what I was strongly suggesting Monday.