Market Close: April 03 UP, Diesel UP $.0205, Gas UP $.0020
Apr 3rd, 2024 by loren
Fueling Strategy: Please “KEEP YOUR TANKS TOPPED TODAY/TONIGHT, Thursday prices will jump UP over 9 Cents ~ Be Safe
NMEX Crude $ 85.43 UP $.2800
NYMEX ULSD $2.7324 UP $.0205
NYMEX Gas $2.7609 UP $.0020
NEWS
May WTI crude oil on Wednesday closed up +0.28 (+0.33%), and May RBOB gasoline closed up +0.20 (+0.07%). Crude and gasoline prices Wednesday settled moderately higher, with crude posting a 5-1/4 month high and gasoline posting a 7-month high. A weaker dollar on Wednesday was supportive of energy prices. Crude also rose on Wednesday’s decision by OPEC+ to stick with its crude production cuts until the end of June, which will keep global oil supplies tight. Crude prices fell back from their best levels Wednesday after weekly EIA crude inventories unexpectedly rose to an 8-month high.
Crude prices found support Wednesday after OPEC+, at its monthly meeting, did not recommend any changes to their existing crude output cuts, which kept about 2 million bpd of production cuts in place until the end of June. However, OPEC crude production in March rose +10,000 bpd to 26.860 million bpd, a bearish factor for oil prices as Iraq and UAE continue to pump above their production quotas. Oil prices have support on concern that the Israel-Hamas war could more directly involve Iran after Iran vowed to retaliate for an Israel airstrike last Friday in Syria that killed top Iranian military commanders.
Crude has support from the recent Ukrainian drone attacks on Russian refineries that damaged several Russian oil processing facilities, limiting Russia’s fuel exporting capacity. Bloomberg calculations show Russian refiners processed 5.03 million bpd of crude during March 14-20, down -400,000 bpd from the average for the first 13 days of March and the lowest in 10 months. JPMorgan Chase said it sees 900,000 bpd of Russian refinery capacity that could be offline “for several weeks if not months” from the attacks, adding $4 a barrel of risk premium to oil prices. However, the disruption to Russian refiners has yet to affect Russian fuel exports because of the large number of Russian ships at sea transporting crude. Russia’s fuel exports in the week to March 31 rose +270,000 bpd from the prior week to 3.74 million bpd, the year’s highest level.
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