Market Close: Feb 01 Down, Diesel DN $.0723, Gas DN $.0364
Feb 1st, 2024 by loren
Fueling Strategy: Please “FUEL AS NEEDED” today/tonight, prices are down $.03 today, Friday prices will remain unchange then Saturday look for a 7 to 8 cent drop in prices~Be Safe
NMEX Crude $ 73.82 DN $2.0300
NYMEX ULSD $2.7129 DN $0.0723
NYMEX Gas $2.1948 DN $0.0364
NEWS
March WTI crude oil on Thursday closed down -2.03 (-2.68%), and Mar RBOB gasoline closed down -3.64 (-1.63%).Crude oil and gasoline prices on Thursday gave up an early advance and sold off, with crude falling to a 1-week low and gasoline falling to a 2-week low. Crude prices retreated after Al Jazeera reported that Israel had agreed to a ceasefire. However, Bloomberg reported that there was not yet a ceasefire agreement but that negotiations are advancing to pause the Israel-Hamas conflict and free civilian hostages captured by Hamas. Crude prices Thursday initially moved higher on a weaker dollar. Crude also rose after OPEC+ signaled that its crude production cuts would continue throughout the first quarter. Gasoline prices remained under pressure from Wednesday when the EIA reported that U.S. gasoline stockpiles rose to a 3-year high. Delegates of OPEC+ said Thursday that they will decide in early March whether to extend their crude oil production cuts into the second quarter. OPEC+ has pledged supply cuts totaling about 900,000 bpd this quarter in tandem with the 1 million bpd cut in oil production by Saudi Arabia.
Signs of stronger manufacturing activity in the U.S. and China are bullish for energy demand and crude prices. The U.S. Jan ISM manufacturing index unexpectedly rose +2.0 to a 15-month high of 49.1, stronger than expectations of a decline to 47.2. Also, the China Jan Caixin manufacturing PMI was unchanged at 50.8, right on expectations and the third straight month of expansion.Geopolitical tensions in the Middle East continue to support crude prices. President Biden said the U.S. would soon retaliate for the attack on a base in Jordan last Sunday by militants in Iraq that killed three U.S. service members. Last Friday, Houthi rebels ramped up attacks on commercial shipping in the Red Sea and struck an oil tanker with a missile that was carrying fuel in the Gulf of Aden. The U.S. and the UK continue to launch airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea. Earlier this month, the U.S. Navy advised vessels to avoid the southern Red Sea. Houthis started attacking ships in the Red Sea in mid-November in support of Hamas in the Israeli-Hamas war and said they won’t stop the attacks until Israel ends its assault on Gaza. Attacks on commercial shipping in the Red Sea by Iran-backed Houthi rebels have forced shippers to divert shipments around the southern tip of Africa instead of going through the Red Sea, disrupting global crude oil supplies.
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Loren R Bailey, President
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