Storm Alert – Code Red – 9.7.21

After a long holiday weekend, southern Louisiana and Mississippi continue to suffer from outages, including both power and fuel outages. Nearly half a million buildings in Louisiana still lack power, including local refineries and terminals that remain offline. Without local product availability, long-haul deliveries have been the only way to transport fuel into the market.

So far, fuel deliveries in the market have been slow. Power outages have taken many fuel-consuming locations offline, so reduced supply availability has been met with less demand. When power is restored, expect demand to rise faster than supply. That means there could be another supply crunch in the next few days as power improves.

Mansfield remains on Code Red in Louisiana and Mississippi due to challenges providing local supplies. Long-hauled routes continue to be necessary for most deliveries, straining the supply chain. Alabama is evolving rapidly, and Mansfield expects to bring the state off Code Orange within the next few days. In the meantime, Mansfield is requesting 72-hour notice whenever possible for new deliveries in all three states.

Market Condition Report - Disclaimer
The information contained herein is derived from sources believed to be reliable; however, this information is not guaranteed as to its accuracy or completeness. Furthermore, no responsibility is assumed for use of this material and no express or implied warranties or guarantees are made. This material and any view or comment expressed herein are provided for informational purposes only and should not be construed in any way as an inducement or recommendation to buy or sell products, commodity futures or options contracts.

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