Question-and-Answer Session
Operator
Thank you, sir. (Operator Instructions). Our first question is from the line of Alex Brand with Stephens. Please go ahead with your question.
Alex Brand - Stephens
Thanks. Hey, guys. So a decent quarter; kidding, a good quarter.
Paul Stebbins
Easy.
Alex Brand - Stephens
I want to make sure that I understand Ira, your commentary about the inventory. I think you said a $15 million hit which is kind of enormous, but the inventory level is very low now. So, should we expect little to or maybe not no, but much less, volatility quarter-to-quarter going forward on that inventory?
Ira Birns
Yes. So let me cover both of your points. First off, the $15 million number is a combination of two things. Last quarter, we reported that we had about a $10 million positive impact. In this quarter we had a few million dollar negative impact. So, on an aggregate basis, it gets close to that $15 million.
Now that we are down a little, about 15 million gallons, it really depends on volatility. If you focus on the fourth quarter of 2008, the level of volatility was enormous. We saw a 50% reduction in price from the end of September to the end of December.
So, despite the fact that our position was much lower than where it had been over the last several quarters, we still had a few million dollar impact. Arguably that number would have been a lot larger had we been sitting on 30 million gallons of fuel.
So, the opportunity for volatility is still there, but it is certainly muted by the fact that we are sitting on lower levels of inventory and I do not know what your assumptions are for prices going forward, but with the price of barrel of fuel at about 40 bucks, the level of volatility that we saw is kind of difficult to repeat, but you just do not know in this world, which directions prices will go down the road.
Alex Brand - Stephens
All right, let me use the volatility as segue. Volatility is helping Marine gross margins which were sounds like, again, pretty good. I do not know if they were around $9 again or what, but as I think about that going forward, how are you guys thinking about the fact that you are now more focused on return than ever so you are trying to do everything you can to keep that margin high versus if the volatility comes down and the bunker market stabilizes, how much margin do you think is at risk?
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