X

Market Close: Feb 05 UP, Diesel UP $.0648, Gas UP $.0617

Fueling Strategy: Please “FUEL AS NEEDED” today/tonight ~ Be Safe

NMEX Crude      $ 72.78 UP $.5000

NYMEX ULSD     $2.7248 UP $.0648

NYMEX Gas       $2.2092 UP $.0617

NEWS

Oil prices rose Monday after the U.S. launched retaliatory strikes in Iraq and Syria against Iranian forces and their allies over the weekend, raising the risk that the Middle East is heading toward a broader conflict. The West Texas Intermediate contract for March rose 50 cents, or 0.69%, to settle at $72.78 a barrel. The Brent contract for April gained 66 cents, or 0.85%, to settle at $77.99 a barrel. The two benchmarks were down about 1% earlier in the session. “There was never a reason for oil to have traded negative this morning, given the weekend’s ongoing military actions in the Middle East were favorable to oil,” Manish Raj, managing director of Velandera Energy Partners, told CNBC. Velandera’s team was buying the dip in oil in the morning, Raj said.

The U.S. launched retaliatory airstrikes Friday against Iran’s Islamic Revolutionary Guard Corps and allied militias in Iraq and Syria. The airstrikes, which hit more than 85 targets, came in response to the deaths of three U.S. troops in a drone strike by Iran-allied militants. The U.S and the U.K. also launched renewed strikes Saturday against Houthi militants in Yemen. The Houthis, who are allied with Iran, have repeatedly targeted commercial shipping in the Red Sea. “That’s coming dangerously close to firing up the hornets’ nest in Iran — how long can they sit there while their allies get pounded one after another,” Bob Yawger, managing director and energy futures strategist at Mizuho Americas, told CNBC.

U.S. Secretary of State Antony Blinken arrived in the Middle East on Monday to push for an extended humanitarian pause in Gaza in exchange for the release of hostages held by Hamas. Blinken will visit Saudi Arabia, Egypt, Qatar, Israel and the West Bank this week. The war in Gaza has pushed the U.S. and Iran to the brink of a direct confrontation, one which analysts have warned could affect crude supplies if there is a disruption in the Strait of Hormuz.

The U.S. is also increasing its urgent military assistance to the small, oil-rich nation of Guyana, officials told the Associated Press on Monday. Guyana is locked in a border dispute with its much larger neighbor Venezuela, which is trying to claim the resource-rich Essequibo region.

Oil had traded lower Monday morning as the dollar strengthened after Federal Reserve Chairman Jerome Powell reiterated the central bank’s cautious approach to lowering interest rates.

Powell said in an interview that aired on Sunday that the central bank is unlikely to slash rates in March. The Fed chair’s comments came after a much stronger jobs report than expected Friday, with the labor market adding 353,000 jobs compared to the 185,000 expected. “With the economy strong like that, we feel like we can approach the question of when to begin to reduce interest rates carefully,” Powell told CBS’ “60 Minutes.” Lower interest rates typically boost economic growth, which would imply stronger crude oil demand.

The dollar rose to its highest level in more than two months Monday as investors reduce their expectations for rate cuts. A stronger greenback makes crude oil, which is priced in dollars, more expensive for holders of other currencies, which can weigh on demand.

Have a Great Day!

Loren R Bailey, President

Office: 479-846-2761

Cell: 479-790-5581

SCHEDULED OUT OF OFFICE  

JUN 06 VACATION LEAVE AFTER LUNCH

JUN 10 RETURN/ARRIVE 1300

Tell Us How We’re Doing On Google Business

https://g.page/r/CUyL9wDolv04EAI/review

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”

www.FuelManagerServices.com

“Coming Together is the Beginning; Keeping Together is Progress; Working Together is Success”  ~ Henry Ford

Categories: Fuel News
loren: Fuel Manager Services Inc. "Serving the trucking industry since 1992" I've been in and around the trucking industry for 45-years beginning in owner operator operations at Willis Shaw Express. I bought a small trucking company that I ran for 6-years then sold and went to work for J.B. Hunt Transport in 1982. After 10-years with Hunt, I started Fuel Manager Services, Inc., we are in our 29th year of serving the American trucking companies. Our simple goal was and is to bridge the gap between the trucking companies and the fuel suppliers.