Market Close: Feb 29 Mixed, Diesel UP $.0255, Gas UP $.0333
Feb 29th, 2024 by loren
Fueling Strategy: Please “WAIT TO FUEL UNTIL AFTER MIDNIGHT CST TONIGHT” prices will go DOWN almost 8 cents Friday AM~ Be Safe
NMEX Crude $ 78.26 DN $.2800
NYMEX ULSD $2.6838 UP $.0255
NYMEX Gas $2.3043 UP $.0333
NEWS
April WTI crude oil closed down 0.28, and Apr RBOB gasoline closed up +3.33, ULSD closed up +2.55. Crude oil and gasoline prices this morning are moderately higher. Expectations that OPEC+ next week will extend its roughly 2 million bpd of crude production cuts beyond March are underpinning crude prices. Also, the ongoing attacks by Houthi rebels on commercial shipping in the Red Sea have disrupted Middle Eastern crude supplies and strengthened the U.S. physical oil markets as foreign buyers turn to U.S. crude supplies to avoid shipping issues. Dollar strength and today’s weaker-than-expected U.S. economic news limit gains in crude prices.
Today’s U.S. economic news was weaker-than-expected and bearish for energy demand and crude prices. Weekly initial unemployment claims rose +13,000 to 215,000, showing a weaker labor market than expectations of 210,000. Also, the Feb MNI Chicago PMI unexpectedly fell -2.0 to 44.0, weaker than expectations of an increase to 48.0 and the steepest pace of contraction in 7 months. In addition, Jan pending home sales unexpectedly fell -4.9% m/m, weaker than expectations of an increase of 1.5% m/m and the biggest decline in 5 months.
Crude prices are supported by concern that the Israel-Hamas war will widen to Lebanon. Hezbollah and Israel have traded fire almost daily since the Israel-Hamas war erupted on Oct 7. Also, the U.S. and UK have engaged in airstrikes against Houthi rebels in Yemen in retaliation for Houthi attacks on commercial shipping in the Red Sea. 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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