Market Close: May 02 Down, Diesel DN $.0931, Gas DN $.1147
May 2nd, 2023 by loren
Fueling Strategy: Please fuel as needed today/tonight ~Be Safe
NMEX Crude $ 71.66 DN $4.0000
NYMEX ULSD $2.2892 DN $0.0931
NYMEX Gas $2.4357 DN $0.1147
NEWS
Crude oil and gasoline prices today are sharply lower, with crude falling to a 5-week low and gasoline dropping to a 6-week low. Crude prices are under pressure on concern a slowdown in the global economy would curb energy demand. Today’s weaker-than-expected U.S. JOLTS job openings and factory orders reports signaled weakness in the U.S. economy, while Monday’s weaker-than-expected Chinese Apr manufacturing and non-manufacturing reports indicated weakness in China’s economy. The U.S. and China are the two largest crude oil consumers in the world.
Today’s U.S. economic news was weaker than expected and was bearish for energy demand and crude prices. Mar JOLTS job openings fell -341,000 to a 23-month low of 9.59 million, showing a weaker labor market than expectations of 9.736 million. Also, Mar factory orders rose +0.9% m/m, weaker than expectations of +1.2% m/m.
Another bearish factor for crude prices is concern that tighter monetary policy from the world’s central banks will slow economic growth and energy demand. The Reserve Bank of Australia today unexpectedly raised its benchmark interest rate by +25 bp to 3.85%. Meanwhile, the FOMC on Wednesday is expected to raise interest rates by +25 bp, and the ECB is expected to raise rates by +25 bp at Thursday’s policy meeting.
Crude oil prices are being undercut by signs that Russia has not delivered on its threat to cut crude output. Tanker-tracking data from Bloomberg shows Russia’s crude exports jumped above 4 million bpd in the week of April 28. Russia has halted the publication of crude and condensate production data in an attempt to disguise if it has actually cut crude output.
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