Fueling Strategy: Please “PARTIAL FILL ONLY” today/tonight, Prices are down 7 cents then Saturday look for another 4 cent drop~ Please Be Safe
NMEX Crude $ 81.73 UP $.4100
NYMEX ULSD $2.5531 UP $.0190
NYMEX Gas $2.6810 DN $.0034
NEWS
May WTI crude oil on Friday closed up +0.41, and May RBOB gasoline closed down -0.34. Crude and gasoline prices on Friday settled mixed. Crude prices spiked more than +$3 a barrel in overnight trade on escalation of Middle East tensions after US officials said Israel launched air strikes at military targets in Iran and Syria. However, crude fell back from its best levels, and gasoline fell into negative territory after Iranian media appeared to downplay the effect of the Israeli strikes, lowering the geopolitical risk premium for crude oil. A stronger dollar Friday was also bearish for energy prices.
Reduced crude demand in India, the world’s third-largest crude consumer, is negative for oil prices after India’s March oil demand fell -0.6% y/y to 21.09 MMT. 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. Russia’s fuel exports in the week to April 7 fell by -450,000 bpd from the prior week to 3.39 million bpd. 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.
Crude prices have support from April 3 when 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.
Have a Great Day!
Loren R Bailey, President
Office: 479-846-2761
Cell: 479-790-5581
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As always, thank you so much for being a part of the Fuel Manager Services, Inc. family, and we look forward to making this the best year yet!
“Celebrating 31-years of Service Excellence”
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