FUEL YOUR FUTURE
About
TACenergy
TACenergy is a Dallas, TX-based independent wholesale fuels distributor of refined petroleum products. Our customers include gasoline and diesel retailers, industrial users, transportation, oil & gas, waste disposal & recycling, trucking, government, utilities, mining, construction, plus any other commercial user or reseller of fuel.
Simply relying on the lowest rack price available at the moment of purchase is a huge risk to both your supply chain and overall fuel costs. At TACenergy, we take the purchasing muscle and flexibility of our national terminal network and combine it with the most efficient logistical and information technology tools. The result is a fuel supply chain that is optimized for every customer's needs in ways big oil is simply not equipped to provide.
Products, Services, and Supply
Our goal is to be the most reliable, convenient, flexible and lowest cost fuel supplier in the nation. In addition, we provide our customers with added value services and 24/7/365 support based in Dallas, TX. With an annualized fuel volume in excess of two-and-a-half billion gallons, TACenergy has a vast terminal supply network as well as regional sales offices across the country.

24/7 Supply & Logistics
Highly-trained logistics professionals are always available in our 24/7 Supply and Logistics call center.

Custom Web Tools
With one of the most advanced collections of web-based tools available, managing your fuel supply and support data is easier with TACenergy.

Inventory Intelligence
Inventory Intelligence with TACenergy monitors tank inventory, ties the data into online tools and trading market intelligence, accurately anticipates demand and automatically dispatches orders.

Industry Solutions
We serve the fuel needs of a wide range of retail, wholesale, commercial, government and industrial customers with our products and services.

Terminal Network
TACenergy's purchasing muscle exceeds two-and-a-half billion gallons per year, and we have the most extensive terminal network of any independent fuel supplier.

Diesel Exhaust Fluid
The EPA is changing emissions standards for NOx emissions, particulate matter and other pollutants from diesel engines. DEF is used in the emissions systems on new diesel-powered equipment to meet these standards.
News & Views
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Wholesale Gasoline Prices Have Dropped To Their Lowest Levels Since Last Christmas
Wholesale gasoline prices have dropped to their lowest levels since last Christmas, after 3 weeks of selling that will give consumers across most of the country something to be thankful for this week. Crude oil and diesel prices have also come under pressure and are currently holding near technical support levels that look pivotal for price action for the remainder of the year.
One unusual note about this selloff: WTI has slipped into a slight contango with the December contract trading roughly 20 cents less than January, a phenomenon we haven’t seen in over a year. That shift in the price curve follows reports that European refiners are actually oversupplied with crude oil, as traders have done too good of a job preparing for the upcoming embargo on Russian imports. Now that crude oil inventories are filling up ahead of their December deadline, the question is if the same feat can be accomplished for diesel before that ban hits in February.
Right on cue, Kuwait’s new 600mb/day refinery, the largest in the Middle East, continues to slowly bring units online, and reportedly sold its first distillate cargo into the export market this week. While the new refining capacity is certainly welcomed in a world starving for diesel fuel, the challenge will be finding enough cargoes to get that fuel where it needs to go, and tanker rates that are surging as a result.
Meanwhile, while many headlines focused on Qatar not serving beer at the world cup, the country was closing on the longest supply deal in history to supply China with LNG for 27 years. Long term deals are critical in the LNG market that requires billion dollar facilities to be able to freeze the gas before it can be loaded on ships, and as part of the reason the world is essentially “sold out” on new LNG for the next 3-4 years.
Money managers reduced their length in petroleum contracts last week with a combination of new short positions and liquidated longs both contributing to the drop. The total positions held, and the open interest in all contracts continues to suggest there’s plenty of money that’s not playing in the energy arena these days, and whether or not it ever comes back may have a large impact on how prices behave in the coming year.
Baker Hughes reported a net increase of 1 oil rig and 2 natural gas rigs drilling in the US last week. The total of 623 oil rigs is the highest since the pandemic shutdown started in March 2023, but is still 60 rigs lower than pre-COVID levels.
Click here to download a PDF of today's TACenergy Market Talk.
Market Talk
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March Trading Is Going Out Like A Lamb As Energy Prices Continue To Search For Direction
March trading is going out like a lamb as energy prices continue to search for direction with Bears focused on soft demand and fears of a recession, while the Bulls can see supply shortages and the risk of disruption lurking around the corner.
While March felt chaotic with a new banking crisis and plenty of other domestic and geopolitical controversy going on around us, it was actually a relatively tame month for refined product futures. The trading range for diesel in March was actually the smallest we’ve seen since before the war broke out and was just ¼ of the range we saw in March a year ago.
Protesters in France agreed to extend refinery strikes through April 4th, which is keeping close to 1 million barrels/day of refining capacity offline. A Business Wire note this morning highlighted how these strikes may be rapidly depleting the stockpiles built up ahead of February’s sanctions that banned Russian diesel imports.
The Dallas FED confirmed what we’ve been seeing in the weekly rig counts, showing that activity in the energy sector has stalled out in the first quarter of 2023. Executives surveyed lowered their Crude oil price outlook for the end of the year by $4/barrel from the previous survey but made a much larger change to expectations on Natural Gas prices, slashing those estimates by nearly 40% since Q4.
As if banks don’t have enough on their plate these days: There were reports this week that Wells Fargo is looking to expand its energy trading business. There are also reports that Wells Fargo was fined nearly $100 million for sanctions violations, is under investigation by the CFTC for illegal trading communications, and that a former executive is facing jail time for obstructing the investigation that ended up with the bank paying more than $3 billion in fines for opening fake accounts.
You may also remember that after the last round of bank bailouts in 2008, the FED moved to make the banks act like banks and not trading houses, which eventually led Morgan Stanley to try and sell their oil trading business to the Russians, only to end up selling it to a firm headed up by a former Enron trader when the Russian deal was nixed by regulators. You can’t make this stuff up.
Click here to download a PDF of today's TACenergy Market Talk.