Prices have spiked(again),now what should you do?

摘要

On the last day of 2021,the price of West Texas Intermediate(WTI)crude oil futures closed at $75/barrel(bbl).About 10 weeks later,the price had risen to over $90/bbl,and then just 10 days after that,prices traded over $130/bbl.In a 10-day period in February,ultra-low sulfur diesel(ULSD)futures rose from $2.85/gallon to over $4.50/gallon-an increase of more than 55%.Industry veterans like to play it cool with pithy remarks about how prices always rise and fall,but eventually calm returns to the market.While that might be true,those veterans are likely not dealing with customers wondering why costs have jumped $2.00/gallon since their last delivery,or with banks and suppliers not willing to increase credit lines in the middle of Winter,nor with customers who don't feel very motivated to pay a $900 oil bill in March when they won't be due for their next delivery until September.Sure,calm might return to the market,but where does that leave you now and for next Winter?