Fueling Strategy: Please fill as needed tonight – Be Safe
NYMEX Crude $ 44.96 UP $1.0900
NY Harbor ULSD $1.5921 UP $0.0485
NYMEX Gasoline $1.6940 UP $0.0710
NEWS
Oil futures put supply worries aside Monday, with the U.S. benchmark ending a three-day losing streak as commodities enjoyed a respite in the dollar rally and gasoline futures jumped due to a refinery outage.
West Texas Intermediate crude futures for September delivery on Nymex rose $1.09, or 2.5%, to close at $44.96 a barrel. Earlier on Monday, the contract dropped as far as 43.35, dropping below a six-year settlement low set in March, and had looked on pace to add to its losses from last week, when it fell 6.9%. Meanwhile, September Brent crude also showed spark, rising $1.80, or 3.7%, to $50.41 a barrel.
Despite the bounce, analysts remained downbeat on oil’s near-term price prospects. Oil was hammered last week as a drop in U.S. crude inventories was offset by a rise in supplies of gasoline and other products and a rise in production. Also, U.S. rig counts continued to rise while weak Chinese economic data highlight concerns about demand. “There are a few good reasons that could explain and verify the current low crude oil prices: the strong rally of [the U.S. dollar], current bearish crude oil fundamentals and the recent slowdown of the Chinese economy prompt investors to sell-off,” said Myrto Sokou, senior research analyst at Sucden Financial, in a note. “Furthermore, investors could remain cautious amid an imminent increase of U.S. interest rates in September. We could soon see crude oil prices trading back to the $40 per barrel level,” Sokou said.
But the Monday rally came as the dollar lost ground versus major rivals, providing a lift for most commodities. Many commodities have fallen sharply this year, due in part to a stronger dollar, which makes them more expensive to users of other currencies. The dollar rally stalled Monday after Federal Reserve Vice Chairman Stanley Fischer said, in a television interview, that the central bank might not hike rates until inflation moves closer to its 2% target. China over the weekend posted disappointing trade and factory-price data in July amid slack domestic and foreign demand.