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Market Close: Feb 08 Up, Diesel UP 1.11 cents, Gasoline UP .0060 cents

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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Loren R Bailey, President

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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.