From Negative Crude to Middle East Conflict: How Energy Markets Shape Farming

Futures Trading involves risk of loss and is not suitable for everyone. Past profits are not necessarily indicative of future results/profits.Tommy's Premium Subscription: www.agbull.comAgBull Audio and Video LinksApple MusicSpotifyYouTubeTikTok Futures and options trading involves risk and is not suited for everyone.Tyler Stockton, procurement manager at Northdale Oil, shares his expertise on navigating volatile energy markets and how global events impact fuel prices for agricultural operations. With seven years in the energy industry, Tyler offers valuable insights into hedging strategies, supply chain dynamics, and current market conditions affecting farmers' bottom lines.• Northdale Oil has grown from one truck and station in 1992 to over 30 gas stations and a fleet of delivery vehicles today• During COVID, crude oil traded at negative prices, allowing Northdale to lock in multi-year fuel contracts for farmers at extremely low rates• Russia's invasion of Ukraine sent prices soaring to $130 per barrel, creating wild market swings• Hedging strategies help farmers establish predictable fuel budgets regardless of market volatility• Most fuel in the region comes from Canadian crude refined in Mandan, ND or Minneapolis before distribution through pipeline networks• Recent Middle East tensions between Iran and Israel are creating new price instability in energy markets• Terminal "basis" pricing significantly impacts final fuel costs - currently showing unusual patterns with negative basis in some marketsContact Tyler at 701-757-0668 (office) or 701-520-9056 (cell) for fuel pricing and supply questions. Futures Trading involves risk of loss and is not suitable for everyone. Past profits are not necessarily indicative of future results/profits.