Fueling Strategy: Please keep your tanks full today, tonight before 23:00 CST completely top out your tanks due to Thursday prices will jump UP 13.5 cents ~ Be Safe
Fueling Strategy: For Gasoline Users – Please have your tanks topped tonight if possible, Thursdsay gasoline prices will go UP $.0060 cents – Be Safe
NMEX Crude $ 78.47 UP $1.3300
NYMEX ULSD $2.8933 UP $0.0111
NYMEX Gas $2.4644 UP $0.0060
NEWS
Oil futures were on track for a third straight gain Wednesday, finding some support as worries about rising interest rates ap7ared to fade, but prices traded well off the session’s highs after U.S. government data showed a seventh straight weekly rise in crude inventories.
The Energy Information Administration on Wednesday reported across the board gains for domestic crude oil and production stockpiles. U.S. crude inventories rose by 2.4 million barrels for the week ended Feb. 3, the EIA said. That followed six consecutive weeks of gains reported by the government agency. On average, analysts forecasted a climb of 2.1 million barrels for crude supplies, according to a poll conducted by S&P Global Commodity Insights. The American Petroleum Institute, an industry trade group, late Tuesday reported a 2.2 million barrel fall, Dow Jones Newswires reported.
The EIA report also showed weekly inventory gains of 5 million barrels for gasoline and 2.9 million barrels for distillates. The S&P Global Commodity Insights survey had forecast inventory increases of 1.6 million barrels for gasoline and 100,000 barrels for distillates. Crude stocks at the Cushing, Okla., Nymex delivery hub climbed by 1.1 million barrels for the week, the EIA said, while total domestic petroleum production edged up by 100,000 barrels to 12.3 million barrels a day.
“A dip in crude exports and ongoing robust crude imports have combined to offset a decent jump in refining activity to result in a modest build of 2.4 million barrels” for crude inventories, said Matt Smith, lead oil analyst, Americas, at Kpler, in a market update. “The build was further aided by production being increased to 12.3 million barrels per day — the highest weekly estimate since the start of the pandemic (April 2020).
Other market drivers
Oil prices had settled higher on Tuesday after Federal Reserve Chairman Jerome Powell didn’t push back as forcefully as feared on market expectations the central bank will slow its interest rate increases. Powell said he expected to see a significant fall in inflation this year but also warned that a surprisingly strong labor market means bringing down inflation will take longer and require rates to move higher than investors had previously anticipated.
Macro investors “have pivoted from selling oil contracts as an expression of the deflationary theme to pricing in a reflationary impulse as the U.S. economy is shedding recessionary concerns after Chair Powell did not signal a higher terminal rate was on the cards at this time,” said Stephen Innes, managing partner at SPI Asset Management, in a note. Oil prices found support this week after news that a major earthquake on Monday temporarily shut Turkey’s Ceyhan oil terminal. Crude flows to the Mediterranean export terminal resumed late on Tuesday, according to Bloomberg.
Still, due to “supply discipline, on the part of the Organization of the Petroleum Exporting Countries , it’s been a “tightly balanced market for months, so the slightest disruption will move markets, and that’s the nervousness you are seeing,” said Innes. An OPEC+ committee on Feb. 1 reaffirmed the oil-producing group’s commitment to its current production agreement.
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