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Market Close: April 01 Up

Fueling Strategy: Please fuel as needed tonight, Friday prices will drop 2 cents but Saturday we’ll see prices go back up 6 cents  – Be Safe
NYMEX Crude    $  61.45 UP $2.2900
NYMEX ULSD     $1.8316 UP $0.0618
NYMEX Gas       $2.0223 UP $0.0626
NEWS
A group consisting of some of the world’s most powerful oil producers on Thursday decided to gradually curb existing output cuts beginning next month. Starting in May an additional 350,000 barrels per day will be added to production, with another 350,000 coming on the market in June. Come July output will be increased by 450,000 barrels per day. The OPEC+ alliance is currently cutting by just over 7 million barrels per day in an attempt to prop up prices and reduce oversupply. OPEC kingpin Saudi Arabia has voluntarily added an additional 1 million barrels per day to those cuts. Saudi Arabia said that it will begin curbing its voluntary output cuts in May.

The meeting comes shortly after the Suez Canal reopened to traffic and as the coronavirus continues to spread worldwide, with French President Emmanuel Macron ordering the country into its third national lock down to alleviate some of the pressure on hospitals. The ongoing coronavirus crisis continues to cloud the demand outlook and analysts expect this to reaffirm Saudi Arabia’s caution about the global economic recovery.

Ahead of the meeting, analysts thought the group would keep production levels consistent. Analysts at Eurasia Group noted that the last month in global oil markets “featured a significant level of volatility” and a sell-off that brought Brent crude futures down to $62 a barrel from $70, before stabilizing around $64 in recent days. “The Suez Canal incident probably helped many oil producers, as it prevented a further slide in prices,” analysts at Eurasia Group said in a research note published Wednesday.

“Once again, it is far from clear that a sustainable recovery would justify a strong cycle of OPEC+ tapering to be followed each month. Saudi Arabia’s caution about the global economic recovery was in many respects warranted,” they added. International benchmark Brent Crude Futures gained $2.38, or 3.8%, to trade at $65.08 per barrel. U.S. WTI Crude futures settled at $61.45, up more than 4%. Both contracts had previously traded in the red during the session.

Have a Great Day,
Loren R Bailey, President
Fuel Manager Services Inc.
“Serving the trucking industry since 1992”
Office: 479-846-2761
Cell: 479-790-5581
www.FuelManagerServices.com
www.owneroperatoradvisoryservice.com
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.”
Categories: Fuel News
loren: Fuel Manager Services Inc. "Serving the trucking industry since 1992" I've been in and around the trucking industry for 45-years beginning in owner operator operations at Willis Shaw Express. I bought a small trucking company that I ran for 6-years then sold and went to work for J.B. Hunt Transport in 1982. After 10-years with Hunt, I started Fuel Manager Services, Inc., we are in our 29th year of serving the American trucking companies. Our simple goal was and is to bridge the gap between the trucking companies and the fuel suppliers.