Fueling Strategy: Please keep tanks topped today/tonight, Wednesday prices will go UP 2 cents – Be Safe
NYMEX Crude $ 47.62 UP $.6300
NYMEX ULSD $1.4600 UP $.0056
NYMEX Gas $1.3255 UP $.0064
NEWS
Oil rose on Tuesday as optimism from the roll-out of coronavirus vaccines balanced out tighter lockdowns in Europe and forecasts of a slower demand recovery. The United States began vaccinating people on Monday as the country’s COVID-19 death toll crossed the 300,000 mark. Britain and Canada have also begun to administer shots.
U.S. West Texas Intermediate (WTI) crude settled up 63 cents, or 1.34%, at $47.62. Brent crude was up 41 cents, or 0.8% at $50.70 a barrel. Oil prices have recovered in the past few weeks, with Brent reaching $51.06 on Dec. 10, its highest since March, supported by hopes of a recovery in demand. Prices had dropped to historic lows in March as the pandemic took hold.
“Brent is continuing to defy all the negative news,” said Carsten Fritsch, an analyst at Commerzbank. “More and more countries in Europe and states in the U.S. are tightening the corona restrictions over Christmas and the new year, which is likely to weigh on demand.” London stepped up pandemic restrictions requiring bars and restaurants to close, Italy is considering more stringent steps over Christmas and Germany is likely to be under lockdown until early 2021. Forecasters are also trimming demand numbers. The International Energy Agency on Tuesday said that any impact of the vaccines on demand is several months away. OPEC on Monday had said oil demand will rise more slowly than expected.
“There is a growing agreement between forecasting agencies that the improvement in global oil demand might not start at the beginning of next year but in the second half,” said Tamas Varga of oil broker PVM. The latest snapshots of U.S. oil supplies are expected to show a mixed picture, with gasoline and distillate stocks rising and crude inventories falling.
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
“To give real service you must add something which cannot be bought or measured with money, and that is sincerity and integrity.”
